Episode 3 of "Shrinking" kicks off with Jimmy paying a visit to Grace's husband, earnestly attempting to persuade him to withdraw the charges against her. However, his efforts fall on deaf ears. Soon after, when Jimmy and Brian join Grace, they unexpectedly learn that the charges against her have been dropped due to her husband's past record of assault. Despite this turn of events, Grace remains dejected, believing she deserves punishment for ruining someone's life.
Elsewhere, Alice confides in Paul that she has visited the drunk driver who caused the accident. Paul expresses his concern, arguing that difficult conversations seldom unfold as anticipated. He insists she refrain from visiting the man again. Meanwhile, Sean's father is taken aback to see his son managing a food truck, later revealing that he had always harbored dreams of starting a business with Sean. Liz inadvertently eavesdrops on this heartfelt exchange.
Tensions escalate between Jimmy and Gaby, as Conner and Summer bask in the glow of their nascent romance. Summer thoughtfully seeks Alice's blessing for their relationship, which Alice warmly grants. Jimmy and Brian then venture to Grace's husband's house to secure his signature on the divorce papers and retrieve Grace's belongings. To their astonishment, they find Grace back living with him.
In a different corner, Julie and Paul visit Julie's husband, confined to a nursing home amid the grip of dementia. Julie deeply appreciates Paul's steadfast support, but Paul opens up about his fears of Julie facing similar struggles with him, given his Parkinson's diagnosis. Julie subsequently enlists Gaby's help to reason with Paul, a task Gaby gleefully embraces.
Brian remains perturbed by Jimmy's silence about his relationship with Gaby. This leads to a humorous spat, highlighting how little they know about each other's lives. The argument reaches a climax when Brian, in a fit of pique, slaps Jimmy—merely because Jimmy doubted Brian's capability to do so.
Later, Alice reneges on her solemn promise and ventures to confront the drunken driver. Their exchange is curt, culminating in herscreaming at him, acknowledging aloud that it was an imprudent course of action. Liz, in her typical manner, sells her share of the truck to Sean's father without so much as a by-your-leave, harboring the hope that this gesture would delight him. Instead, Sean is infuriated, disclosing a fractured relationship with his father and resentment towards Liz's unilateral action.
Grace's sister orchestrates a final sit-down with Jimmy, amidst Grace's relentless self-punishment for her actions towards her husband. Brian steps in, presenting character testimonials from Grace's friends who profess their heartfelt gratitude towards her. Their unwavering support catalyzes Grace's self-rediscovery, prompting her to relocate to her sister's, far from the city's hustle and bustle.
Paul resolves to change his neurologist, enabling Julie to concentrate solely on their bond, free from the shadow of his illness. Jimmy pays Brian a visit for their Wednesday dinner, a tradition once shared with Tia, using the occasion to catch up on Brian's life and mend their friendship.
Alice returns home, grappling with her confrontation with the man who took her mother's life. Conner endeavors to console her, but Alice, in a moment of impulse, kisses him. Initially hesitant, Conner, sensing Alice's desperation, eventually succumbs.
