While Roz tries to come up with an appropriate gift to thank Niles for doing her a favor, Martin tells Frasier some stunning news: he saw Donny buying an engagement ring for Daphne. Prodded by Daphne, Martin informs her that Donny’s going to propose. An ecstatic Daphne shares the news with Niles, who’s crushed.

Later, Daphne stops by Niles’ office and asks to speak with him. She’s been having visions that the real love of her life is someone other than Donny, and feels this means she must turn down Donny’s proposal. Seizing the opportunity for a second chance with Daphne, Niles urges her to follow her gut instinct. Daphne announces that she’s going to break up with Donny.

Returning home, Daphne talks about her visions with Frasier, who chides Niles for advising Daphne to break up with Donny. Chastened, Niles encourages Daphne to reconsider dumping Donny. Just then, Donny arrives and proposes. Daphne happily accepts. That evening, Daphne has a new vision of her true love with some sort of dragon, while at the same instant, Niles opens Roz’s gift: a dragon sculpture.