A few weeks following the birth of Rodney, Del Boy and the rest of his gang (Boycie, Trigger, Jumbo, Albie and Denzil) have left school.
Joan, however, still misses her old lover, Freddie "The Frog" Robdal, the local gentleman villain and Rodney's real father, unknown to Reg and the rest of the family.
Robdal, meanwhile, has been detained along with his friend, Gerald "Jelly" Kelly, on the suspicion for robbing the jewellery store in Margate during the "Jolly Boys' Outing" with Del and the others, by the crooked DI Thomas and DC Stanton.
Their lawyer arranges bail, and Thomas attempts to have it overturned, but is refused when the judge is revealed to be an old war friend of Robdal and Kelly.
At the flat, with Del, Reg, and Grandad out at a New Year's party at the Nag's Head, Robdal pays Joan a visit and sees his son for the first time, holding baby Rodney in his arms.