Ally McBeal is introduced as flashbacks of her and ex-boyfriend Billy Thomas are displayed in montage. Ally loses her job at her law firm when she files a sexual harassment claim against a colleague. A chance meeting with ex-classmate Richard Fish results in Ally being offered a job at his new law firm. To Ally's shock, Billy works at the law firm and he has an attractive wife, Georgia.

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Richard's business partner and co-partner, John Cage, is arrested for soliciting a prostitute. Ally discovers an unsavory fact about Billy's past when they are assigned to Cage's case. Richard invites Ally for a meal with him, his girlfriend Whipper and potential client Ronald Cheanie in an attempt to pair Ally and Ronald.

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Ally wonders why Ronald failed to kiss her after their first date. Georgia and Ally work on an age discrimination case where the opposing litigator is the ex-colleague Ally sued at her previous law firm.

Ally is asked to give a eulogy for one of her professors from college. She is reluctant because his wife is unaware about the affair they had years earlier. Georgia and Ronald feel threatened when Billy attends the funeral with Ally.

Ally attacks another shopper during a supermarket dispute and forgets to pay for spermicide. Ally is charged with assault and shoplifting. Her best friend Renee, a district attorney, gets her out of the charges; but rumors spread, and Ally is called before the State Bar Review where her eccentric behavior is questioned.

Ally and John defend Whipper's friend on a solicitation charge. While working with John, Ally notices his unique approach to work. During another case, Ally gives mouth-to-mouth resuscitation to an overweight lawyer working with the opposition when he suffers a near heart attack.

Ally takes the case of a Jewish lady who wants her rabbi to grant a spiritual release from her marriage, because her husband is comatose. Ally and the rabbi insult each other repeatedly. Georgia is asked to leave her law firm, because her boss' wife is uncomfortable with her husband working with an attractive woman. Richard offers her a job at Cage and Fish.

Billy and Georgia experience marital difficulties when he reveals to Ally that he still has feelings for her. Ally and Georgia try to help a client get around her prenuptial agreement when her husband leaves her for another woman. Elaine threatens to sue the firm for sexual harassment on behalf of the office women when the men begin to ogle the mail deliverer. She hires aggressive lawyer Caroline Poop.

After Renee makes fun of Ally for being a prudish 'Julie Andrews type' they agree to each tell their best dirty joke to see who can get the best reaction from a crowd. Caroline Poop files a sexual harassment claim against Cage and Fish.

Whipper asks Ally to take the case of a young transgender sex worker, Stephanie, charged for solicitation for the third time. Ally is moved by Stephanie's situation and gets her a job at Cage and Fish. Richard's eccentric uncle dies, and his minister refuses to let the man's bigotry towards short people be mentioned during his funeral service.

Richard asks Ally and John to represent three people requesting the right to legally have a three-way marriage. Ally is disgusted by the idea until Georgia points out the similarities between the case and the triangle they are in with Billy. Richard feels forced into proposing to Whipper. Richard is hosting the annual Christmas party, and John wants to ask Ally to be his date.

Ally, Renee, and Georgia take an art class and are all drawn to a well endowed male nude model. Ally is assigned the case of a 19-year-old charged with assault after punching the ex-boyfriend of his date when he verbally abused her. Ally is disturbed that she finds herself attracted to her client despite his young age.

Ally bumps into the male model in Starbucks and confronts him for the way he treated her. John is assigned a case to help two siblings sue an airline after their father died in a plane crash.

Ally and Georgia represent a woman wishing to marry a death row inmate, resulting in Ally being a bridesmaid. Richard asks Ally to flirt with a judge. Whipper catches Richard touching Janet Reno's neck, a fetish of his.

Ally and Billy represent an elderly artist fighting to maintain control of his estate after his son decides he is too senile to stay in charge. Ally agrees to date with John, but once she feels uncomfortable she tries to get him to cancel. John realizes Ally still loves Billy.

The firm takes on a high profile case of a US Senator sued for 'interfering with marital relations,' and when the case starts to become disturbingly similar to the situation between Ally, Billy, and Georgia, the latter decides she can not work on the case. Renee starts to worry about Ally when she starts to see the dancing baby more frequently.

Ally, Georgia, and Renee join a kickboxing class, and Ally and Georgia are scheduled to fight together. Ally defends a surgeon Greg charged with performing a controversial operation and finds herself attracted to him. John suggests Ally visits his therapist.

Ally and Greg are involved in a car accident. Ally discovers her latest opposing counsel is a 10-year-old genius; but only after she kicked him, believing him to be the dancing baby. Richard represents a woman suing for sexual harassment after being passed over for promotion for refusing to sleep with her boss.

Ally is turning 28. That is upsetting enough to her but Elaine wants to throw a party at the bar for her, and Greg won't sleep with her and she doesn't know why. She's defending a man in court who was arrested for breaking into his date's house and massaging her feet. She tries to fix things for the couple at the bar, but it's not a good night for Ally. Especially when Renee chooses to surprise her as well and it looks like it's not going to be a happy birthday after all.

Billy tries to get the firm into homicide law, something Ally has trouble coping with. Ally also needs to defend Renee who broke a man's neck.

This is the beginning of a two-part crossover ending with The Practice 2x26 - "Axe Murderer".

Bobby and Eugene join forces with the firm of Cage and Fish, defending an Axe murderer who believes she was Lizzy Borden in a prior life. Ellinor is crushed when she finds out the truth about her boyfriend's role in Rebecca's insurance fraud sting, while Lindsey offers Helen a job with the firm.

This is the end of a two-part crossover beginning with Ally McBeal 1x20 - "The Inmates".

John and Ally are defending Renee for her life and career. Renee is upset with John over his antics in court but, when Ally's former fling, Glenn, appears as a prosecutorial witness, John kicks her off the case. Georgia might be pregnant, but she and Billy are unsure about impending parenthood. If only Ally could find a theme song to help deal with Georgia's pregnancy.

A convicted felon tried to escape from jail, and John and Ally are defending him. However, the DA on the case is John's former love from college. Ally saw the love immediately, but John is worried that she won't return his feelings. A jilted bride is suing, but when the judge assigned to the case is Whipper, Elaine, Richard and Whipper all have to deal with their unresolved issues of loneliness.

John's second cousin assaults happy people. In court, his defense will be to baffle the witnesses and jury. Two men want a court order to switch their hearts, and Bobby Donnell wants Ally-to help with the case. But if Ally's imagination has any say in it, he will want her eventually.