The episode begins with Rachel waking up early on Saturday morning because of a neighbor in the opposite apartment warbling a pretend song called "Morning's Here" to the tune of Chuck Mangione's "Feels So Good".She storms out of her bedroom and begins to rant at Monica and Joey about how she hates the apartment. Monica agrees after an unsuccessful attempt to reassure Rachel, and they agree that they should try to get their own apartment back as soon as possible. They try to persuade Joey and Chandler to swap them the apartment for season tickets for the Knicks, to which Joey agrees, but Chandler refuses, as he thinks that the apartment is worth more, resulting in an argument between the guys when Chandler says "screw the Knicks!". The girls decide to bet the apartment once more; the winner gets the apartment and the season tickets, to which Chandler agrees, but only because Joey is his best friend. Phoebemakes up a game that no one understands, resulting in them resolving the bet with a high card game, which the guys win. When the guys return from the basketball game planning to give the girls peace offerings (T-Shirts that do not fit them), they discover that the girls have switched the apartments round while they were away. Chandler is intent on reclaiming what he sees as their apartment and menacingly accuses the girls of stealing it, but Rachel and Monica have a last proposal. They offer to kiss each other for one minute, which causes Chandler and Joey to fall into silence. The next scene is the guys returning to their own apartment and saying "totally worth it" about the girls' kiss.
Emily persuades Ross to get his ear pierced spontaneously. When Ross comes up with the fact that he is "a whole other guy" when he is with Emily, they both agree that they love "that guy", which causes problems when Emily has to leave New York again. Ross wants her to move in with him, but Joey and Chandler convince him not to ask her because they think it's too soon as they have only known each other for six weeks, comparing their relationship with the relationship Chandler has with a carton of milk in his refrigerator. However, Ross decides to ask Emily nevertheless, resulting in her accidentally bringing marriage into the equation. At first they both think it is a stupid idea, but because it would be the perfect way to be together forever, they suddenly get engaged, using Ross' new earring as an engagement ring. Unfortunately, it is too small, so the romance of the moment is slightly detracted.
Towards the end of the episode, Ross and Emily go to Monica and Rachel's apartment to tell the friends the news. Understandably, Monica, Phoebe, Chandler and Joey are all shocked. Rachel is in her bedroom during the announcement, but she emerges and tells Ross that she heard, and congratulates him with a hug, although a look of sadness is stricken across her face.
During the closing credits, Joey is woken up by his neighbor singing the "Morning's Here" song. He joins in, and the neighbor says that he will see him tomorrow morning.