While Sheila and Jody tend to a dying Grammy Frank decides to remove himself from the house. He stops at the Kash and Grab and accidentally walks in on Ian and Mickey going at it. A panicked Mickey vows to kill Frank to keep him quiet. When Lip quits school Fiona makes a bargain with him: she'll go back and get her diploma if he does. While she starts studying for the GED Karen and Lip meet with adoption agencies. It soon becomes apparent to Lip however that Karen plans to sell their baby to the highest bidder. In response he starts acting out and… gets expelled. Meanwhile Steve steps up to coach Carl's football team.
Monica returns to party and plot scams with Frank, but the rest of the family suspects she hasn't returned to stay; Fiona reconsiders her decision to kick Lip out of the house; Grammy's death affects everyone differently, and leaves Frank determined to make sure he gets every last penny his mother left behind; Sheila and Jody think Eddie's ghost is haunting the house.
Fiona starts to plan for her future now that Monica is back but her reprieve may be short-lived as Monica falls apart, spends the squirrel fund and gets arrested; Steve conspires to reunite Estefania with her true love so that he can be with Fiona; Lip and Ian learn the true identity of Mandy's baby; Sheila takes in a homeless crack addict.
It's a typical Gallagher nontraditional Thanksgiving that includes a suicide attempt by Monica, Carl shooting a bald eagle, and Karen going into labor; Steve agrees to allow Estefania's boyfriend to steal his identity; Ian meets a businessman named Ned (guest star Harry Hamlin); Frank tries to get his share of his mother's money from his brother Clayton.
In the Season 2 finale, lonely Frank schemes to break Monica out of the psychiatric facility; Jimmy earns his way back into Fiona's good graces and asks her to meet his family; Ian runs into Ned again; Eddie's insurance check arrives.
In the third season premiere, the shameless Gallaghers are back– as Fiona scrounges for cash, Lip gets arrested, and Frank wakes up in Mexico – with no money or passport.
Fiona stresses about the money she used for her club night and it gets worse when Lip finds out. Frank makes his way home and he's the only one who can keep Hymie quiet. Kev's wife resurfaces.
Frank tells Carl he has cancer in order to scam a charity foundation. Fiona is blown away by what's asked of her in her new job. Lip hunts for a neighborhood pedophile.
Carl says his goodbyes as he heads off to cancer camp, but he isn't pleased with the camp's activities. With Frank on babysitting duty, Sheila wants to introduce Jody to "toy time" and Frank agrees to be Jody's sex coach. Fiona attempts to unite her coworkers against their boss. Lip and Mandy rescue Mandy's half-sister, Molly, from foster care. Jimmy learns his parents are getting divorced and his dad is gay.
The city of Chicago gives notice that they're doing work on the sewer main. The problem? Aunt Ginger's bones are still buried in the yard and Frank needs to find her before the city does. Meanwhile, Fiona is picked on at work for not satisfying her boss. When Fiona fails to provide the support Jimmy needs, he turns to Este. Molly learns that she's a boy and Ned asks Ian to rob his wife's house.
A government agency threatens the cohesion of the Gallagher clan. With Monica nowhere to be found, Fiona is forced to find Frank and get him to make a "Father of the Year" appearance in court. It all goes well until Fiona discovers that Frank's not the solution to her problem - he's the cause. Meanwhile, Kev and Veronica recruit V's mother as a surrogate and Terry catches Mickey and Ian in a compromising situation.
William H. Macy
Frank Gallagher
Emmy Rossum
Fiona Gallagher
Ethan Cutkosky
Carl Gallagher
Shanola Hampton
Veronica Fisher
Steve Howey
Kevin Ball