- A street gang named the Dragons begin causing trouble at Rachel's Place, breaking things and sexually harassing employees; Carl arrives just in time to chase them out. That night, after closing time, the gang breaks in and heavily vandalizes the teen hangout. Everyone's anger grows when a bruised and bloodied Eddie arrives, announcing he was ambushed by the Dragons' gang members. Carl wants to take matters into his own hands, but Urkel reminds him that if he were to do that, he'd only destroy much more than his career. Urkel eventually agrees to go undercover as a prospective gang member and trick them into confessing their recent activities.
- A street gang known as the Dragons causes trouble at Rachel's Place. They harass Urkel (by hanging him by his suspenders on a coat rack), make fresh comments to Laura and Rachel, and damage glassware. Rachel orders the gang members out, but Chain, the gang's leader, has everyone pick tables, chairs, and more malt glasses so they can cause major damage.
Just then, Carl shows up and, knowing what was about to happen, asks what's going on. The gang decides to leave (but not before Carl asks Chain to pay for the broken glasses).
That night, Rachel and the others laughedly talk about how Carl taught the Dragons a lesson in manners and respect. Then, the phone rings. It's Carl and it's the worst news imaginable ... a gang, likely the Dragons, have heavily vandalized Rachel's Place. The damage is far worse than she had ever feared. Tables and chairs lying everywhere, video games damaged, the glasses and china broken ... and of course, don't forget everything spray painted. Carl reassures her that they'll catch the Dragons, but warns her that they will be back on the streets since one or more people will back up their alibi about being somewhere else when all this happened. Rachel asks him if the Dragons can do whatever they want and get away with it. Carl refuses to go that far, but Eddie staggers into Rachel's Place, battered, bloodied and bruised and tells them that they can.
Minutes later, Harriette has an ice pack on Eddie as he tells them about what happened when he was out walking back from his date. He was minding his own business, when the Dragons had jumped out from behind a parked van, attacked him and beat him up. Fortunately, Harriette is able to treat the injuries, which are not serious, but she still wants to put antiseptic on his wounds to clean it up. Rachel and Laura are resigned to cleaning up the mess that the Dragons made to Rachel's Place. Immediately, Carl is outraged and wants to take matters into his own hands. Steve begs him to reconsider because he's a cop. Carl refuses by insisting he's a father first and wants his neighbor out of the way so he be allowed to handle the situation his own way since it was his son that was attacked. Urkel refuses by warning him that if he took matters into his own hands, he'll be charged with Police Brutality against the Dragons and he'll lose his badge. Carl asks him if he wants him to ignore what they did to Eddie. Steve says no and manages to persuade him to handle things the right way by allowing him to pose as a bloodthirsty, prospect gangster who is seeking to get into the Dragons.
At the house, Carl is dressing Steve up as a prospect gangster and tries to convince him to back away while he still can. Urkel refuses, citing that he wants revenge just as much as he does and reassures him that he'll be fine. He'll be hooked to a wire, and Steve's conversation with Chain will be tape-recorded. Lt.Murtaugh tells them the plan while Urkel's in the Dragon's hangout, he and Carl will be in a white van listening to their conversation.
At first, things go off smoothly, but as Urkel continues to ask questions, one of the more talkative members lets slip that he and the other Dragons caused the vandalism and beat up Eddie. Chain tells the others to shut up and then says he suspects that Urkel was wired. Carl and Lt. Murtagh (who have been listening to the entire proceedings from their surveilance van) have to run in to save Urkel's life. Even though they are handcuffed together thanks to Murtagh's immaturity, they manage to get the job done and Rachels Place was restored to it's original state. Steve is rewarded as a hero for putting the Dragons away for a long time.
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