Dr. Frasier Crane, formerly of Boston, has recently arrived back in his birthplace of Seattle to restart his life following his painful divorce. His independence is soon compromised by the fact that his father, Martin, is incapable of living by himself and must move into Frasier's apartment.
After Martin moves into Frasier’s apartment with his physical therapist, Daphne, and his dog, Eddie, Frasier struggles with the loss of his personal space and ensuing tensions with Martin. After repeatedly failing to get any kind of solitary time at home or work, he decides to try forging a bond with his gruff father.
Frasier and his brother, Niles, decide to treat Martin to a meal at fancy restaurant Le Cigare Volant in an attempt to improve his sense of style. Meanwhile, Niles meets Daphne for the first time and is instantly smitten, despite already being married.
After being insulted on Frasier's show for a bad review, newspaper columnist Derek Mann challenges Frasier to a fistfight. Although Frasier agrees in the heat of the moment, Martin is angry to later learn he has no intention of going through with it. After learning of the shame he put Martin through when he ducked out of a similar situation as a child, Frasier resolves to meet the challenge.
Frasier throws a cocktail party to show off a new painting he has bought, but is humiliated by the artist, who declares it is a forgery. When Frasier's attempts to return the painting to the gallery fail, he plots revenge against the gallery owner.
Frasier gives advice to a caller, Marco, to break off his relationship with his girlfriend, Catherine (Amanda Donohoe), because of his inability to commit. Niles questions Frasier's ethics when he ends up going on a date with Catherine.
After accidentally seeing Martin having an emotional meeting with an old family friend at a restaurant, Frasier and Niles begin to wonder whether Martin had an affair while married.
Frasier meets Bebe Glazer (Harriet Sansom Harris), a smarmy talent agent who sweet-talks him into doing a series of product endorsements. He finds himself conflicted when she arranges a television ad for a product he does not support, knowing that the money earned could go toward his son's college fund.
Frasier is told a rumor that one of the KACL on-air staff is getting fired. When sportscaster Bob 'Bulldog' Briscoe is called into a meeting with management, Frasier assumes the rumor is true and accidentally reveals it to him. As a result, Bulldog quits the station while Frasier learns that his job was actually safe. Feeling guilty and feeling pressure from Martin, Frasier decides to go to the station manager and beg for Bulldog's job back, only to learn the rumor was true and it was actually Frasier who was about to be fired.
After the premature death of Martin's physician, who was similar to Frasier in physique, behavior and temperament, Frasier begins to obsess about his own mortality. Putting his affairs in order, he becomes determined to find more about the physician to the point he decides to attend his shiva.
Frasier's plans for Christmas with Frederick, Martin and Niles are derailed after Lilith decides to take Frederick to Austria. Already angry, Frasier then has a bitter argument with Martin, and agrees to do the Christmas Day shift at the radio station, which proves depressing.
Frasier is surprised to learn that Martin has been sleeping with a woman from his building. He then broadcasts this fact in his next show, embarrassing the woman and infuriating Martin. Feeling guilty, Frasier resolves to get them back together. Roz is going out with Noel Shempsky, a Star Trek addict.
Frasier takes part in a bachelor auction, where he is "bought" by Kristina Harper (Claire Stansfield), a model. He invites her for dinner at his apartment, but when she arrives, Kristina announces that she has some urgent business and needs Frasier to look after her daughter, Renata (Ashley Bank). Frasier learns from Renata that her mother is neglectful, leading him to criticize Kristina heavily when she returns, only to discover that Renata had invented the bad behavior she described.
After Roz is scammed by a street con, Frasier claims to always be able to spot a criminal, so Martin challenges him to a test: several of his friends will come over to play cards, including one ex-convict. Frasier wins if he can spot the con.
After Niles has a fight with Maris, he and Daphne have a moment of mutual attraction during an attempt to make a reconciliation dinner. Daphne is stranded at Niles' mansion during a storm, and Frasier must reach them before they do something they both will regret.
Frasier is tired of Martin's favorite chair and replaces it, but Martin demands his old chair back. The old chair is easily located on the set of a school production, but the recovery proves more difficult.
Frasier, Martin, Niles and Daphne go on a road trip in a Winnebago. They drive over the border into Canada only to learn that Daphne is not allowed to leave the U.S. because she does not have her green card yet.
Frasier falls ill, and KACL restaurant critic Gil Chesterton (Edward Hibbert) tries to steal his time slot in his absence. Frasier begs Niles to take over to prevent this. When Niles unexpectedly runs the show with great success, a feverish Frasier begins to imagine plots against him, and decides to drag himself to the station no matter what. He locks Niles and Roz out of the studio and broadcasts in a state of delirium.
Over their daily coffee, Frasier and Niles discuss life and happiness. For the first time, Niles acknowledges he may have feelings for Daphne. Frasier considers if he is happy with his new life in Seattle.