The writers originally wanted to take "the high road" with the episode. MacFarlane found a list of plot ideas from the third season that says "Peter goes gay" and he decided to make an episode with that premise. John Viener worked as the executive story editor for the episode. This episode being his first and to date his only writing credit on the show. "Family Gay" was written by at the time Executive Producer and future co-creator of the Family Guy spin-off The Cleveland Show, Richard Appel. "Family Gay" was executive producer Richard Appel's first writing credit during his time on Family Guy. The episode ends when Mort throws the horse through the Griffin's living room window yelling, "Take back your fucking horse!" Peter returns to his family, and they agree to never speak of the incident again. However, the effects of the gene are revealed to be temporary and the effects wear off right when Peter is in the middle of an orgy with Scott and nine other men. Lois states that she is willing to accept Peter the way he is now and takes him out of the straight camp, telling him to go back to Scott. When Scott comes over looking for Peter, Brian admits his actions. Seeing Lois heartbroken and depressed, Stewie Griffin and Brian Griffin (who is hesitant due to his support of gay rights) attempt to bring Peter back to his normal self by kidnapping him and sending him to a straight camp for conversion therapy.
Upon learning that the effects of the gene may be permanent, she decides to make the best of things when Peter suddenly leaves her for a gay man named Scott. Lois is initially upset that Peter is now gay, but she warms up to the change when he begins exhibiting stereotypical gay behaviors like shopping for clothes and cooking muffins, only to reconsider her stance when Peter rejects her sexual advances.
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In order to pay for the damage, Peter decides to participate in a series of medical drug tests, including one in which he is injected with an experimental gene that renders him gay. Though the horse ends up dying of a fatal heart attack and Peter disposes of the body by flinging it into Mort Goldman's pharmacy, the Griffins are in debt for initial damages. While on his way to buy groceries, Peter instead buys a brain-damaged horse, which not only disturbs everyone but also causes $100,000 worth of damage when Peter enters it in a race and it goes on a rampage. "Family Gay", along with two other episodes, was nominated in the " Outstanding Comedy Series" category for the 2009 61st Primetime Emmy Awards. It received divided reviews from television sources and critics, in addition to receiving criticism from the Parents Television Council. Seth Rogen provided a guest-voice as Peter under the effects of the "Seth Rogen gene" and Meredith Baxter provided a guest voice as herself. The episode was written by Richard Appel and directed by series regular Brian Iles. In the episode, Peter becomes temporarily gay after participating in a medical drug test. It originally aired on the Fox network in the United States on March 8, 2009.
" Family Gay" is the eighth episode in the seventh season of the American animated television series Family Guy.