Simone and Sipowicz investigate a case where two transvestites witnessed a murder that they say was committed by a 'gay-basher' who's supposed to have been in jail for a previous crime. Meanwhile, Fancy's former foster son is arrested and charged with possession of a kilogram of heroin. He tries to make a deal with Sgt. Ray Kahlins, the "blow hard" from the DEA who worked out of the squad room the previous year, to nab the drug dealers. Medavoy finally asks out Abby Sullivan, the beat cop from the anti-crime unit upstairs. But she turns him down by revealing that she is a lesbian. Elsewhere, Russell gets more deeper involved in her undercover work which puts a strain on her relationship with Simone. But the psycho Jimmy's malevolence puts Russell's life in danger when he puts a drug in her drink.

Simone, Sipowicz, and Russell investigate a shooting of two women and later go into a raid on a drug dealer's apartment in which Russell risks her life to capture the dealer/murderer, but later Russell tells Simone that she happens to be pregnant. Meanwhile, Martinez and Medavoy look into the murder of a prostitute, despite Martinez's complaints about a back problem that later gets him taken out of the squad. Also, Naomi tells Simone about her problems with her landlord who has reported her to the INS.