- Kate Costas becomes the new manager of KACL. ·
- Daphne starts dating Joe DeCarlo, Niles's building contractor. ·
- During a labor dispute, Frasier and Kate have a torrid affair. ·
- Niles and Maris separate. ·
- Kate leaves Seattle for another station in Chicago. ·
- Niles acquires a dog, named simply, Girl. ·
- Niles and Daphne dance the tango at a society ball. ·
- Diane Chambers visits Frasier in Seattle. ·
- Martin starts dating Maureen Cutler, a young policewoman. ·
- Finale: While celebrating the third anniversary of his show, Frasier remembers his first day on the air.
Won
- AMERICAN COMEDY AWARD· Funniest Male Performer in a TV Series (Leading Role) Network, Cable or Syndication: Kelsey Grammer · Funniest Supporting Male Performer in a TV Series: David Hyde Pierce
- BMI FILM & TV AWARDS· BMI TV Music Award: Bruce Miller, Daryl Phinnessee
- BRITISH COMEDY AWARDS· Best International Comedy Show
- CASTING SOCIETY OF AMERICA (Artios)· Best Casting for TV, Comedy Episodic: Jeff Greenberg
- EMMY· Outstanding Comedy Series
- GOLDEN GLOBE· Best Performance by an Actor in a Television Series - Musical or Comedy: Kelsey Grammer
- HUMANITAS PRIZE· 30 Minute Category: Steven Levitan
- PGA GOLDEN LAUREL AWARD· Television Producer of the Year Award in Episodic - Comedy: David Angell, Peter Casey, David Lee, Christopher Lloyd, Vic Rauseo, Linda Morris, Steven Levitan
- SCREEN ACTOR'S GUILD AWARD· Outstanding Performance by a Male Actor in a Comedy Series: David Hyde Pierce
- VIEWERS FOR QUALITY TELEVISION AWARDS· Best Quality Comedy Series · Best Actor in a Quality Comedy Series: Kelsey Grammer · Best Supporting Actor in a Quality Comedy Series: David Hyde Pierce
Nominated
- EMMY· Outstanding Casting: Jeff Greenberg · Outstanding Lead Actor in a Comedy Series: Kelsey Grammer · Outstanding Supporting Actor in a Comedy Series: David Hyde Pierce
- GOLDEN GLOBE· Best Television Series - Musical or Comedy · Best Performance by an Actor in a Supporting Role in a Series, Mini-Series, or Motion Picture Made for TV: David Hyde Pierce
- SCREEN ACTOR'S GUILD AWARD· Outstanding Performance by a Male Actor in a Comedy Series: Kelsey Grammer; · Outstanding Performance by an Ensemble in a Comedy Series: Peri Gilpin, Kelsey Grammer, Jane Leeves, John Mahoney, David Hyde Pierce
- TELEVISION CRITICS ASSOCIATION AWARDS· Outstanding Achievement in Comedy
EPISODES