Season 2

1. Summertime

During summer season, things have changed for the Gallagher family and friends. Fiona (Emmy Rossum) and Veronica (Shanola Hampton) now work as waitresses at a local club. Sheila (Joan Cusack) continues to make progress in overcoming her agoraphobia, while Karen (Laura Slade Wiggins) now attends Sex Addicts Anonymous meetings and constantly hangs out with Jody (Zach McGowan), one of her group members. Debbie (Emma Kenney) and Carl (Ethan Cutkosky) are running a summer babysitting service in the house to bring in extra funds. Lip (Jeremy Allen White) now forms part of a fight club to earn money, while also trying to get back with Karen. Tony (Tyler Jacob Moore) has now moved into the house next to the Gallaghers, performing renovations.

At the Alibi Room, Frank (William H. Macy) overhears a bar patron, Baby (Marcus Brown), claim that he survived being tasered twice without falling or urinating. Doubting his story, Frank bets $10,000 to see him replicate it. However, Baby wins the bet and immediately demands the payment. Frank uses Liam to win sympathy panhandling until Baby takes Liam as collateral. At the nightclub, Jasmine (Amy Smart) introduces Fiona to David (Casey Biggs) whom she is having an affair with. Fiona also flirts with a handsome banker, Adam (James Wolk), whom she later has sex with. Meanwhile, Ian (Cameron Monaghan) continues to work at Kash's store, although Kash (Pej Vahdat) secretly leaves his pregnant wife Linda (Marguerite Moreau) and children for another man. Ian expresses interest in attending West Point, and Lip agrees to help him with his application and grades, despite fearing that his brother might be killed in combat.

Kevin (Steve Howey), with the help of Ethel (Madison Davenport), has begun growing marijuana in the Alibi's basement, causing the building's electric bill to increase, much to the dismay of the bar's elderly owner Stan (Jack Carter). When Veronica (Shanola Hampton) discovers the marijuana, she orders Kevin to destroy it; Kevin secretly buries a small amount of the marijuana in their garden. When Frank fails to return Liam to the Gallagher house, Fiona and her siblings arrive at Baby's house to pay for Liam's release. Despite coming short, Baby accepts the payment and Fiona uses some of Kevin's marijuana to cover the rest. Fiona decides to run in the field and try to break her personal record time. The episode concludes with the entire South Side neighborhood celebrating as Kevin burns the remainder of the marijuana in the streets.

2. Summer Loving

With Sheila (Joan Cusack) continuing to improve on her agoraphobia, Frank (William H. Macy) worries he might get kicked out of the house. At the Alibi, he finds a new financial plan in former bar patron Dottie (Molly Price), whose declining health makes her an ideal match for him. Though Dottie is initially hostile towards Frank, she eventually warms up to him, letting him perform chores around her house.

Ian (Cameron Monaghan) and Mandy (Emma Greenwell) pick up Mickey (Noel Fisher) from prison. Ian and Mickey rekindle their sexual relationship, and when Mickey explains that he needs to find a job, Ian convinces Linda (Marguerite Moreau) into giving Mickey a job at the store. Debbie (Emma Kenney) and Carl (Ethan Cutkosky) both complain to Fiona over wanting more space in the house; Debbie is annoyed by Liam, whom she shares the same bedroom with. Fed up, Debbie moves Liam's crib into the boys' shared bedroom, much to the dismay of Carl; Fiona decides to let Carl make his own bedroom in their old van.

Fiona (Emmy Rossum) juggles her job, family life, and a burgeoning love life; Jasmine (Amy Smart) tries setting Fiona up with a sugar daddy, Richard (Johnny Sneed), but Fiona dislikes the fact that Richard is married. Karen (Laura Slade Wiggins) continues to pursue a sex-free relationship with Jody (Zach McGowan) while pursuing a sexual relationship with Lip (Jeremy Allen White). After seeking advice from Kevin (Steve Howey), Lip comes to believe that Karen is ready to settle down with Jody.

Veronica (Shanola Hampton) takes some of the elderly people from the retirement home on an excursion. As she gets them back to the retirement home, one of the seniors, Harry (Robert Sutton), has a stroke. When Debbie arrives at the retirement home, she is astonished to see ambulances taking Harry's corpse. Frank tries to seduce Dottie, but she refuses to get intimate with Frank, revealing that her heart could explode if her blood pressure increases. That night, Lip waits outside Karen's house and sees her passionately kissing Jody on the mouth. Angry, he decides to leave instead.

3. I'll Light a Candle for You Every Day

Fiona reconnects with Craig Heisner, her high school crush who is now married. After meeting with him, Fiona considers if she should go forward in a new relationship. While riding the "L" train home, she finds an abandoned purse with $500 in it, and decides to spend the money on food and groceries. After seeing Harry's corpse, Debbie starts to think of death, worrying her siblings. Kevin considers buying the Alibi from the owner, Stan, an idea that Veronica doubts over its prospects.

Frank starts to consider what to do in his plan with Dottie. To get her money, Frank steals an engagement ring that Jody was planning to give to Karen. He then proposes to marry Dottie, promising to keep her memory alive after she dies; Dottie accepts the proposal. While she is in the shower, her heart transplant pager suddenly beeps; Frank intercepts the page, telling the hospital that Dottie had already passed. Lip continues assisting Professor Hearst at the university, while also helping Ian with his West Point plans. However, he is upset when Karen says she wants to end their sexual relationship, as she is in love with Jody and is certain he will propose to her.

After discovering that the donor's heart was given to someone else, a depressed Dottie thanks Frank for taking care of her, and asks him to assist her in euthanasia by paying him $2,000; she will have sex with him, knowing she will die. Frank reluctantly agrees and the two have sex, causing Dottie's heart to explode, after which Frank takes the money and the ring. Nevertheless, he is left distraught by Dottie's death and gives the ring back to Jody, who proposes to an enthusiastic Karen. Feeling guilty for spending most of the money, Fiona collects the $500 to return to the purse's owner.

However, she ultimately keeps the money when the owner insults her for living on the South Side. Reeling from the encounter, Fiona meets up with Craig to go on a date, but is left disappointed after having sex in his car. On the way home, she briefly decides to call Steve. That night, Frank goes to a church to light a candle in Dottie's honor, and seizes the opportunity to steal the church's donation money.

4. A Beautiful Mess

A woman named Lucy arrives at the Gallagher house with a baby, wanting to talk to Fiona. When Fiona meets her, Lucy slaps her and chases her through the neighborhood, revealing she is Craig's wife. She is forced to flee to Sheila's house, where she reprimands Craig through a phone message.

Debbie is overwhelmed with daycare business, and the stress manifests itself into an intense rash. Worrying that she's putting too much stress on the kids, Fiona forces Debbie to throw a slumber party for fun. Debbie develops a crush on Carl's friend, Little Hank, and invites him. She also decides to invite Holly, a 14-year-old still stuck in fourth grade, who only agrees to attend because of Lip. Ethel bonds with Malik, a teenage father on Kevin's youth basketball team. While Kevin is fine with her decision, Veronica fears for her safety. Frank is scared by Sheila progressing in curing her agoraphobia. When she reveals she wants to visit the Alibi, Frank realizes his days might be numbered.

Lip has sex with Mandy, and upon realizing she will sleep with anyone, gets her to try to seduce Jody. Debbie's slumber party proves to be underwhelming, as Little Hank rejects her advances, preferring to flirt with Holly. At night, Holly tries to sleep with Lip, who refuses her advances. Angry, she storms out of the party, prompting others to leave as well, devastating Debbie. This is witnessed by Fiona, who was arriving from a date with Adam. The following morning, Craig and Lucy arrive at the Gallagher house, where Craig apologizes to Fiona for her actions, causing her to isolate herself in the bathroom and cry.

Later, Karen arrives and attacks Lip for trying to ruin her relationship with Jody. As she leaves, she reveals she is pregnant in front of the Gallaghers. As Sheila prepares to walk to the Alibi, an airplane's wheel crashes right in front of her. This causes her to panic and return home, to Frank's delight.

5. Father's Day

Eddie Jackson's corpse is found by a yacht in Lake Michigan. Sheila is shaken by the revelation, but Frank views this as an opportunity to collect Eddie's life insurance benefits and pension. As he celebrates in the Alibi, Kevin informs Frank he is a prime suspect in his death, as Eddie threatened him in the bar before his disappearance.

At the Gallagher household, Carl decides to lend Frank's room to a prostitute named Beverly for money, although Fiona is worried that she wanders naked through the house and is accepting clients into the house. Fiona and Lip have a discussion about Karen's pregnancy; Fiona reiterates that she's not taking care of another kid. Needing an alibi, Frank asks Terry Milkovich for help; Terry promises to get the needed evidence to corroborate Frank's innocence, but he wants $1,500. Frank is detained by the police, and he believes it is because of Eddie's death. However, Frank discovers he is actually being arrested for Karen's Daddyz Girl video, and he faces thirty years for sexual assault of a minor. Karen provides an alibi for Frank, telling the authorities he did not consent; Frank is ultimately released, although the detective promises she will catch Frank eventually.

Fiona attends a ritzy wedding with Richard but lies about her background, telling Richard that she went to Princeton. One of Richard's friends, Greg, immediately suspects Fiona is a prostitute and mocks her. Fiona admits that she lied about her background and storms out, only to be consoled by Richard, who explains he is aware of his background but is still interested in being friends with her. Veronica suspects Kevin is having an affair, as he has been lying over his whereabouts. She follows him to a tenement building, where she sees him meeting with a woman.

Later, she threatens him into revealing his encounters, and he reveals he was learning how to read. She does not believe it, until she visits the woman to corroborate. Kevin explains he was trying to impress her with a romantic anniversary for themselves, and they reconcile. Meanwhile, Ethel opens up to Malik about her rape by her husband Clyde; Malik gets his father, also in prison, to stab Clyde.

Ian meets with Colonel Kirk McNally, a United States Department of Defense representative, hoping to be enrolled into West Point. However, he is heartbroken when he realizes McNally wants Lip instead for his intellect. Lip and Ian then get into a brutal fight, with Ian reaffirming he will get into West Point without his help. Lip is also shaken when he discovers Karen and Jody already married, and insults their planned life together. Richard takes Fiona home, and they make arrangements to dine later. After he leaves, Steve appears, surprising Fiona. At the cemetery, Karen urinates on Eddie's gravestone.

6. Can I Have a Mother

Frank's mother, Peggy "Grammy" Gallagher, is released from prison on medical furlough. She has Carl break a wall in the bathroom, where she retrieves money and a gun she hid before being sent to prison. She then pays Carl and Debbie for their silence.

Fiona is surprised when Steve reveals he is married to a Brazilian woman, Estefania. They decide to go on a double date, with Fiona bringing Adam along. Both Fiona and Steve head to the bathroom, where Steve reveals he married Estefania to pay off a debt he owed towards Estefania's father Nando, a mafia mob leader. As they argue, they kiss and almost have sex before stopping. When they return, Adam correctly deduces they had an encounter and angrily walks off. Ian starts ignoring Lip, with the family believing that it was because Ian insulted Karen.

Frank is shocked to discover his mother in the bar, and she asks him to help him in retrieving money. While taking a stop with Sheila, Peggy insults her, prompting Sheila to kick Peggy out of the house. Frank then accompanies Peggy into meeting Dr. Noah Pitts, her partner-in-crime who abandoned her to the police. Peggy wants $200,000 she is owed, and gives him one day to retrieve it. Peggy then confides in Frank that she plans to kidnap Noah's children as a collateral. Frank secretly meets with Noah, asking him to pay him forward to avoid risking the lives of his children. Noah is only able to give him $75,000, but threatens to call the police if they contact him. Peggy is angry that Frank reduced her demands, and stabs him in the leg when he keeps some of the money for himself.

At a wedding party for Karen and Jody, a drunk Lip shows up despite not being invited, while Sheila, overwhelmed by the large crowd of people, mixes her medication with alcohol. When Peggy insults Sheila, the latter goes on a drunken tirade, finally calling out Peggy for her actions. This prompts Peggy to aim her gun at her, only to be stopped by Steve. Following the incident, Lip talks with Karen over her baby, and they seemingly reconcile. However, Lip states that he wants her to get an abortion, causing a furious Karen to slap him. After finding out that Clyde had died, Ethel packs her bags and secretly runs away with Malik, horrifying Kevin and Veronica. They also discover that they stole Kevin's marijuana, using it to get cash and leave the city. Seeing Steve back, Debbie finally reveals his real identity as Jimmy to Fiona.

Frank is disappointed to learn that Eddie gave his insurance money to Karen, and he lashes out at Jody. Sheila, finally seeing Frank's true colors, kicks him out of her house. He is forced to return home, where Peggy has found out that he has been cashing Aunt Ginger's checks, and she explains she will stay for some time. This causes Frank to go on an angry tirade, blaming her for his life. Peggy is not affected by his words, claiming he was always a loser from birth. Seeing this, Fiona joins Frank outside to comfort him.

7. A Bottle of Jean Nate

Fiona is surprised when Jasmine wakes her up in her house. Jasmine invites her to a party she is hosting on David's boat, and Fiona considers going. The Gallaghers are also annoyed that Peggy is now staying with them, but they have no way in getting her to leave. At the house, Peggy bonds with Carl and gets him involved in a homemade meth lab. Reeling from Ethel's sudden departure, Kevin and Veronica come to realize that they want to have a baby. Kevin grows worried over Stan living alone at the Alibi, and he takes Stan to live at a nursery home.

Karen grows disillusioned with her life with Jody. Despite having broken up with Lip, she continues hanging out with him as she considers new alternatives in her marriage. Under Lip's advice, she manages to get Jody to sign a prenuptial agreement, with Jody unaware of its content. Later, Karen gets angry during sex and surprises Jody by kicking him out of the house. Lip and Ian continue avoiding each other, until Ian realizes that Lip is still seeing Karen and mocks him for trying to ruin his life. Before their fight escalates any further, Peggy interrupts them, suggesting they should solve their problems by having a fist fight. Lip and Ian agree to fight underneath the "L" train, although neither ends up winning; both finally express their frustration with each other and reconcile.

Fiona, Kevin and Veronica arrive at Jasmine's yacht party. However, Fiona is upset to see Steve and Estefania (Stephanie Fantauzzi) as guests, something that Jasmine was aware of. Fiona confronts Steve over his double life; Steve admits that he was planning to tell her but never got the chance to. Afterwards, Jasmine consoles an emotional Fiona and kisses her, professing her love for her. Stunned, Fiona thanks Jasmine for the party and leaves.

The following day, Peggy and Carl's meth lab explodes in the basement. When Fiona discovers Carl's involvement, she unites with Frank to get rid of his mother. Peggy is picked up by the paramedics after fainting at a hardware store; Fiona and Frank are informed that Peggy has terminal cancer. After Jasmine is kicked off David's boat, she reveals that she is homeless and asks Fiona if she can stay at the Gallagher home. When Fiona refuses, Jasmine angrily ends their friendship. Steve arrives at the Gallagher house and proclaims to Fiona that he loves her; she rebuffs him again and walks off.

8. Parenthood

Frank continues taking care of Peggy, rotating from staying at his house and with Sheila. While buying medicine for his mother, Frank goes to the store and catches Ian and Mickey having sex in the freezer. Despite their horror, Frank is not annoyed and leaves with the supplies and some money from the cash register.

Now back with Karen, Lip wants to quit school to focus on becoming a father, but Fiona tells him that if he reconsiders, she'll go back and get her GED. However, Karen surprises Lip by announcing she wants to give her baby up for adoption, feeling she would be an unfit mother. They go to different adoption agencies, but Karen seems more concerned about the money than her baby's future. This leads to an argument, wherein Karen reminds Lip that he is not confirmed to be the baby's father. In an attempt to get closer to Fiona, Steve volunteers to be Carl's football coach, much to Fiona's dismay.

Meanwhile, Mickey decides to kill Frank, as he fears he will expose his homosexuality and face the wrath of his father. Ian tries to comfort him, but Mickey makes it clear they are not a couple. Mickey and his gang ultimately prepare to ambush Frank in the street, but Mickey is unable to go forward with the plan. Instead, he approaches a nearby police officer and punches him, violating his parole and allowing him to get sent back to prison.

Upset by Karen's decision, Lip insults a teacher and breaks a window, getting himself expelled. Fiona is informed about this by Lip's guidance counsellor, but discovers Lip is still being offered a chance to prove himself at another school. When Lip makes it clear he will not go back to school, Fiona gives him an ultimatum to either return to school or leave the house, prompting Lip to move out. Sheila and Jody take care of Peggy as her condition starts to worsen. Sheila and Peggy reconcile in the process, and Peggy reveals her intentions to send money to each of Frank's brothers; however, she refuses to give any to Frank. Wanting to hasten her own death, Peggy convinces Sheila to smother her with a pillow. After being informed of his mother's death, an emotional Frank visits Monica, crying that his mother died.

9. Hurricane Monica

The Gallaghers learn of Peggy's death and are surprised to discover Monica now staying with them. Monica is helping Frank in grieving his mother, but the siblings wonder if she will stay for good. Monica also has sex with Frank, after revealing that her relationship with Roberta has ended.

Lip moves in with Karen, but furiously leaves when she says Sheila wants him to pay rent. He then goes with Kevin and Veronica; while Kevin is willing to let him stay, Veronica refuses. He convinces Steve in letting him stay by being part of his business. While lounging in Steve's apartment, Lip hears Estefania having phone sex with a man named Marco; he later informs Steve. Frank breaks into Sheila's house, eager to reclaim the cash he believes Peggy has hidden. This causes Sheila to believe her house is haunted, unaware that Frank is making the noises. She asks Jody for help, and they in turn hire a priest for advice. After attempting to perform a séance, Sheila apologizes to Jody for Karen's behavior and they kiss; Karen later returns home and overhears her mother and Jody having sex.

Monica tries to connect with her kids, attending Carl's football games and thanking Fiona for raising the kids in her absence. After learning of his homosexuality, Monica decides to take Ian to a gay club, and wins him over with her genuine sympathy over his recent break-up with Mickey. Meanwhile, Frank talks with Jody over the money and is furious when he discovers Peggy gave it to his other brothers instead. The Gallaghers throw a party, where Monica dances joyfully with her children. The following morning, Monica pays for Peggy's ashes, and Frank uses it for his cigarette. Terry Milkovich suddenly breaks into the house and attacks Ian, revealing that Mandy is pregnant.

10. A Great Cause

Monica is now spending more time with her family, often getting Debbie and Carl to stay up late at night to watch movies with her and Frank. Ian continues to get harassed by Terry, who believes he got Mandy pregnant. Per Monica's suggestion, Ian tries to enlist in the Marines, but is turned down as he lacks a high school diploma.

With Monica around to help out, Fiona begins to focus on her future by taking GED classes and taking initiatives to move up in her club job; her boss, Meg, hesitantly agrees to let Fiona manage a club night. Steve attempts to smuggle Marco into the United States to reunite Estefania with her true love and get back into Fiona's good graces, but complications arise when they can't find him. Estefania later gets mad at Steve when he realizes Marco is running out of resources and calls him a "dead man" before leaving their room.

Sheila and Jody take in Ruben, a deaf drug addict, into their new "hospice". Sheila struggles to communicate with Ruben, until Jody reveals he knows American Sign Language and can finally see what he needs. Kevin and Veronica have been unsuccessful in their attempts to make a baby, prompting Veronica to visit a fertility clinic; she later discovers that she is highly unlikely to get pregnant because of PID.

Monica finds the family's "Squirrel Fund" and decides to get her and Frank a few gifts, including drugs and a new car. After Terry once again tries to shoot Ian in his house, Mandy pulls up a shotgun on her father to let Ian live. Lip and Ian realize that Terry actually got Mandy pregnant while drunk, and he was trying to express his guilt by framing Ian. To help with an abortion, Ian starts a fundraiser with his family. Monica takes Carl on a ride, and allows him to drive the car, which leads to their arrest.

Lip arrives at the house to get bail money but realizes Monica took the fund; he is forced to use his own money to bail them out. Before Fiona leaves for her night at the club, Lip informs Fiona about the event and harshly reprimands her for not focusing on her family. Stunned, Fiona says she thought it would be different this time. After tearfully scolding Monica for her actions, Fiona returns to the living room, where she breaks down before cleaning up the kitchen.

11. Just Like the Pilgrims Intended

The Gallaghers prepare for Thanksgiving, but a depressed Monica does not want to leave her bed. Forcing her to take a shower, Frank decides to give her cocaine to lift her up. They subsequently visit Clayton to get some of Peggy's money from him, but he does not fall for Monica's seduction.

Steve picks up Marco, reuniting him with Estefania. Marco and Estefania then have sex at every possible place, annoying Steve and Lip. Upon learning that Steve was married to Estefania, Marco prepares to kill him. In response, Steve agrees to allow Marco to take his apartment and steal his identity. Lip then decides to move in with Mandy, resuming their sexual relationship. Her brothers ask Lip to take them to a liquor store, which he reluctantly agrees to. However, the visit is actually a planned robbery, with the cashier surprising the brothers by pulling a shotgun. Lip then decides to leave the car, forcing the Milkovich siblings to escape in the car themselves. Ian goes to a gay club and sleeps with an older businessman who calls himself Ned.

Karen informs Sheila that she knows about her affair with Jody, only to be surprised when her water breaks. They take her to the hospital, and Lip meets them there, having filmed a movie for when the child grows up. Meanwhile, as the Gallaghers dine for Thanksgiving, Monica excuses herself from the table; she then slits her wrists in the kitchen in a suicide attempt. As Steve tries to stop the bleeding, Frank walks out of the house. While Monica is sedated in the hospital, the family moves to Karen's room to see her baby.

Karen successfully gives birth, but the family is taken aback when they see the baby is Asian and has Down syndrome. Karen refuses to hold her baby, and an upset Lip storms out after Karen reveals that the father is most likely Timmy Wong. Lip informs the adoptive parents of the baby, and they decide to not adopt him, prompting Lip to angrily leave and destroy the movie. Later that night, Sheila steals the baby and flees with Jody on a motorcycle. In the streets, a distraught Frank tries to sleep on a sidewalk.

12. Fiona Interrupted

The Gallaghers are affected by the recent events of Monica's attempted suicide and the birth of Karen's developmentally delayed child. In the aftermath of her suicide attempt, Monica is now in a psychiatric institution; Frank visits her, promising to help her escape.

Lip and Karen return to her house, having been informed that Sheila stole the baby from the hospital. Sheila and Jody want to take care of the baby, whom they named Hymie, but Karen wants the baby back in adoption. Lip tries to interfere, but is reminded by Karen that he is not the father, causing him to walk out, cutting ties with Karen. When Sheila makes it clear she wants to keep the baby, Karen calls the cops. One of these is Tony, who is bewildered by Karen's actions.

When they refuse to take the baby or arrest Sheila, Karen makes an ultimatum to her mother; the baby or her. Steve, now going by Jimmy again, decides to take Fiona and her family to dine with his parents. The dinner goes well until Jimmy's father, Lloyd arrives; Ian recognizes Lloyd as the man he had sex with a few nights earlier. Later, Fiona and Steve have sex, but are interrupted by Estefania, who shows up crying and asks Jimmy to let her stay, revealing that she was abused by Marco.

With the help of a bar patron, Frank and Debbie sneak into the institution to retrieve Monica. They convince her in escaping, along with her new girlfriend, Jill. They escape through a window, but Frank is surprised when Monica flees with Jill in the car; Debbie tearfully reveals that Monica told her they are better off without her. While talking with Lip, Mandy consoles his predicament and suggests he should go back home. The following day, he returns to school to finish a test. He then visits Karen, who is packing her bags.

When Karen pushes Sheila to make a decision, Sheila chooses the baby, prompting Karen to storm out; Lip tells her she will regret her decision in the future. That night, Frank goes to the house and gets into a fight with Ian, prompting Estefania to knock him out with a frying pan. The family drags Frank outside, just as Lip returns home.