Homer tries a new hair growth formula - Dimoxinil - and wakes up with a full head of hair, which wins him a promotion at work. However, Homer's hair and success prove to be short-lived when it's revealed that he fraudulently charged the Dimoxinil to the company health plan.
While watching TV with the family, Homer sees a commercial for a hair restorer called Dimoxinil, branded as a "miracle breakthrough" by the announcer on TV. He visits a doctor who sells Dimoxinil, but learns that it costs $1,000, and Homer cannot afford that. Lenny suggests Homer pay for Dimoxinil through the company's health plan: "Just fill out a few medical insurance forms creatively." Homer arranges to get the Dimoxinil through a shady deal in an alley with the doctor he visited previously. He applies the restorer to his head, and the next day, Homer wakes up with hair. At work, Mr. Burns surveys the security monitors to find a new person to promote to an executive promotion. He sees Homer with hair and chooses him for the job.
Now that he's an executive, Homer looks for a good secretary, but all of the applicants—attractive women who openly flirt with Homer—fail until a man named Karl applies. Homer hires Karl, and finds in him a man who sees that Homer is not executive material, but is willing to help him. The two improve Homer's workplace wardrobe, and Karl even arranges for roses and a singing telegram when Homer forgets his and Marge's wedding anniversary. At the power plant's board meeting, Homer makes a suggestion to improve the low productivity and decrease the record high worker accident rate: Give people more tartar sauce when they have fishsticks every Tuesday. Mr. Burns approves Homer's proposal, and accidents do decrease while productivity increases. However, Smithers observes that the decrease in accidents exactly matches the number that Homer himself is known to have caused last month, and the productivity increase matches the one that occurred the last time Homer went on vacation. Burns, however, is impressed with Homer's efforts and gives him the key to the executive washroom. Smithers grows jealous over Mr. Burns' joy regarding Homer's work at the plant, and when Mr. Burns asks Homer to towel off his hands (bypassing Smithers) and follow him down the hall, it's the last straw. Smithers takes matters into his own hands. Checking through the plant's files, Smithers finds Homer's "creatively" filled out medical insurance form and sees that Homer charged Dimoxinil to the company health plan and wrote "to keep brain from freezing" as the reason for the charge.
Shortly afterwards, Burns asks Homer to give a speech to the executives. As Homer discusses the speech with Karl, Smithers meets up with them and confronts Homer about the insurance fraud, ready to fire him on the spot. However, Karl convinces Smithers that the entire scheme was his idea, and he is fired instead of Homer. Karl politely says his goodbyes to Homer, who now has to worry about the big speech without his secretary's help. When he gets home, he finds Bart using the Dimoxinil bottle, splashing the formula on his face in order to grow a beard. Homer's exclamation at seeing Bart handling the formula scares Bart and causes him to spill the hair restorer. The next day, without it, Homer loses all his hair before the big meeting. At work, he's surprised to find Karl, who has written a series of notecards for Homer to help him with his speech. However, Homer tells Karl that without his hair, he won't be taken seriously. Karl energizes Homer with a pep-talk, explaining that all the things he did (the tartar sauce, the washroom key, drying Burns' hands) were the result of him, not the hair.
Homer presents his speech about economizing the power plant. Despite the fact that Homer gives a brilliant speech about the Japanese art of self-management that could save the plant a lot of money, it flops because none of the other executives are willing to take a bald man seriously. By the end of the speech, the entire audience has walked out, and Homer is summoned to Mr. Burns' office. Burns voices his displeasure, but rather than fire Homer, he decides to show him something. Burns shows him a scrapbook of his youth when he had blond curly hair, which he was considered attractive until his senior year of college when he became "bald as a plucked chicken." Knowing what Homer has gone through, Burns is willing to give Homer his old job back. Even so, Homer is still upset, worried that Marge won't love him now that he has no hair, as well as his annoyance at losing his chance to escape that dead end job in Sector 7-G, and that the kids are going to hate him as now he cannot make good on his promises of getting them luxuries. But Marge being Marge, she lets him know that the hair doesn't matter. She also tells Homer that his job has always provided their needs and that the kids will get over not being spoiled. The episode ends with Marge singing "You are so beautiful to me".