Ross and Monica's Aunt Silvia passes away and leaves a beautiful dollhouse to Monica. Monica invites Phoebe to play with it but then doesn't like Phoebe's ideas and won't let her touch it. Hurt, Phoebe makes her own dollhouse, with slides and an incense room. But the incense room causes a fire and the house burns down. Joey pines for Kate, who is dating the director of their show. Since he can't have Kate he sleeps with her understudy. Then during rehearsal things heat up between Joey and Kate, who's been attracted to Joey all along, and the two sleep together. But Joey is crushed when Kate pretends nothing has happened and returns to her boyfriend. Rachel sets Chandler up with her boss, who is crazy about him. Chandler, meanwhile, thinks she's a bore, but tells her he'll call because that what he says to women even if he doesn't mean it. Rachel's boss drives Rachel crazy talking about Chandler and Rachel forces him to tell her the truth.