Late August 1965: Three consecutive days, Sunday, Monday, and Tuesday
Joyce, Peggy, and friends are in Joyce’s car, leaving Jones Beach, when Joyce announces they are waiting for others, and among the others, Abe climbs in. Peggy ends up on his lap, and gradually, the ice thaws between them.
Abe and Peggy arrive together at her apartment and quickly begin to make out.
Ken is having dinner with his fiance, Cynthia, and her parents. Cynthia is talking about how Trudy has just gone into labor. Jim Flory of BBDO says hello, and accidentally reveals that Lucky Strike is leaving SCDP for BBDO. Ken is horrified and excuses himself from dinner. He goes to the maternity ward and tells Pete about Lucky Strike.
Faye and Don are kissing, apparently having just come in. Pete calls and tells him. Don tells Pete to wake Cooper and meet them in the office.
Bert, Don, Pete, and Ken are waiting in Roger’s office. When Roger comes in he feigns surprise at the news. He then fakes a phone call to Lee Garner, Jr. He more or less replicates the actual conversation they had. He tells Don he’ll fly to Raleigh-Durham in the morning.
Don comes in at midnight; Faye is asleep on the couch. He tells her about Lucky Strike. She cuddles up with him.
Pete comes back to the hospital; his father-in-law, Tom, tells him the baby is at least a day away. Pete tells Tom about Lucky Strike. Tom tries to talk Pete into leaving SCDP, noting that Ted Chauogh of CGC wants him. Pete is loyal to SCDP.
Abe is getting up to leave, Peggy’s in bed in a sheet. They’re awkward, uncommitted, until Abe admits this isn’t a usual thing for him. Then Peggy admits she wants him to stay and he comes back to bed.
Don, Pete, and Bert are in Don’s office. Roger calls, lying that he’s in North Carolina, and tells Bert it’s all over. We see that Roger is actually in a hotel room, and has never left town.
An all-staff meeting begins to gather. Danny, Freddie, and Stan speculate as to the cause. Bert reads prepared remarks (handed him by Joan), telling the staff they’ve lost Lucky Strike, then turns over the meeting to Don. Don stresses confidentiality while the clients are being told. He tells them nothing will change and that they’ll succeed. Then the head of accounting talks about belt-tightening. Meanwhile, Peggy strolls in late and glowing.
Afterwards, Don calls Creative into his office and tells them they’re in trouble and that Creative has to be excellent, on their toes, and acquiescent to clients. He tells Peggy alone that it could be very bad. She’s pleased he’s counting on her.
Roger phones Joan and reveals he’s in Manhattan at the Statler. He wants to see her because he’s wracked with guilt. She’s angry and not interested in seeing him.
Peggy discusses her Playtex presentation tomorrow with Danny and Stan. Her ideas are sensual. Abe arrives, pretending to be a delivery person. After she leaves the room, Danny and Stan talk about how aroused Peggy seems, and Stan sees it as good for him.
In the staff meeting, Pete sleeps while the rest go over accounts. Bert suggests they attend David Montgomery’s funeral; Montgomery was a senior account man at a major agency, and the funeral could be a way to network with potential clients.
Megan comes in to tell Don that Al Weaver from Glo-Coat is on the phone. Don takes the call in his office, where Glo-Coat tells him they’re taking their business elsewhere. Don loses his temper, breaking then throwing his Clio. When Megan comes in, he asks her to monitor his drinking, and stop him at three drinks.
Back in the staff meeting, Pete is discussing Trudy’s labor difficulties. Don comes in, angry at Pete because they’ve lost Glo-Coat. He accuses Pete of being too distracted by his wife’s labor to speak appropriately with clients.
Stan sees Abe leaving and grins.
When Pete arrives he sees Ted Chauogh is there. Ted has a rattle for the baby, and then offers Pete a partnership. Pete looks disgusted.
Joan lets Roger in. As soon he enters, he kisses her, but she puts him off. Despite his insistence, she ends their relationship. At last he accepts it and puts out his arms for a goodbye hug, which she gives him. He leaves, sadly.
It’s 8 pm, no one is in the office but Don and the janitor when Faye arrives. They kiss and talk about his day. He asks her for information about unhappy clients, but she refuses to cross that ethical line. He presses, and she’s angry that he wants to use her. She leaves mad.
Peggy and Stan are in her office. She’s nervous because Playtex is on their way. Stan tells her he’s going to show her a relaxation technique, and when her eyes are closed, kisses her. She stops him.
In Roger’s office, Roger tells Bert, Pete, Don and Joan that Lucky Strike couldn’t be saved. He continues to pretend he was there yesterday, and Joan says nothing. Roger refuses to go to David Montgomery’s funeral to look for business and is demeaning of SCDP. Don becomes angry that Roger couldn’t save his only account, and Don, Roger, and Pete all shout. Megan bursts in with the news that Trudy has had a daughter. They all congratulate Pete, but it’s muted because of the fighting. Everyone but Roger gets up to go to the funeral, and Joan shoots Roger a disgusted look.
In Peggy’s office, she puts on lipstick and gets some on her teeth. She asks Stan if she looks okay, he sees the lipstick, and says she’s fine.
A funeral home
Co-workers tell stories about David Montgomery and how he was always away from his wife and daughter although, they say, he adored his family. Meanwhile, Don, Pete, and Freddie look around for ripe clients.
Peggy presents to Playtex. She doesn’t understand why the client is licking his teeth at her, but they love the presentation. After they leave, Harry tells her about the lipstick, and Stan grins.
Don arrives back at the office late. He’s surprised that Megan is still there. He asks for account briefs, and to see Peggy, and tells her she can leave after that. In his office, he pours himself a drink and notices the Clio is back on his desk. When Megan comes back, she says Peggy is already gone. She asks if she can stay and learn more about the business. When he consents, she carefully closes the door. They start talking about work but soon they’re chatting about her life, and she admits she thinks about him all day. She puts her hand on him and leans in; they kiss. He says it’s not a good idea, she kisses him again. He stops again, she persists, they lay down on the couch.
Roger comes in, looking exhausted. He tells Jane his day was fine. She presents him with a box full of Sterling’s Gold, a vanity press publication. Unenthusiastically, he signs one to her at her insistence. She tucks herself under his arm and holds him. He looks sad.
Don and Megan get dressed. He invites her for dinner, but she sends him home to sleep.
Don arrives to see Faye leaving a note. He is sure she’s ending it with him, but she tells him she’s done as he asked, and gotten a meeting for him with Heinz. Don is shocked and guilty. She kisses him. He thanks her and invites her to stay, warning her he’ll probably fall asleep. She leads him inside and they sit on the couch. She tucks herself under his arm and holds him.
The Welcome to My World plays as the episode ends.