 In Acapulco, Frasier has a torrid affair with a model named Kelly. Since she s going through a divorce, she asks him to keep their relationship a secret, and he promises. Back in Seattle, though, he is needled when everyone takes his "discretion" to mean that he struck out and can t admit it. Indignantly, he reveals the truth about Kelly to Martin, Niles, and Daphne. When they believe that he s concocted an "imaginary friend" out of loneliness, he goes to increasingly insane lengths to prove it.