Homer discovers a miracle hair growth formula named Diminoxil and rushes out to buy it. His visions of robust hair, however, are cut short when he finds out that the formula costs $1,000.00. Homer is persuaded by Lenny to cheat his employer's health insurance policy so that the company will pay for it. Applying the formula overnight, Homer awakens to find a thick mop of hair.

Marge finds the new Homer exciting. Mr. Burns mistakes him for an energentic young go-getter and promotes him. Assuming his new title, Homer hires an assistant named Karl. With Karl's help, Homer so impresses Burns that he is given the key to the executive washroom. Smithers, fuming with jealousy, snoops through Homer's files and finds the bogus insurance claim. He confronts Homer, but Karl takes the blame for doctoring the claim. Karl is fired, leaving Homer to fend for hinmself.

When Bart breaks the bottle of hair potion, Homer returns to his old, bald self. Karl convinces Homer that it was not his hair that made him a better person, it was believing in himself. Homer gives a speech to his fellow executives on increasing profitability, but without hair, no one takes him seriously and he is demoted to his old position. At home, Homer also expects rejection, but Marge assures him that she loves him just the way he is.