Dr. Lawrence Dykstra (Larry) is a psychologist and friend of Willie's who is initially called in to help resolve a conflict between Willie and ALF. One of the reasons that Willie chose to talk to Larry is because of his ethical commitment to privacy.
Dr. Larry Dykstra is played by Bill Daily, who played the next door neighbor Howard Borden on The Bob Newhart Show. ALF refers to The Bob Newhart Show in the first episode featuring Larry, and one of Larry's patients in the waiting room is played by Jack Riley, who played Mr. Carlin on The Bob Newhart Show. His character has a similar disposition in this episode. Bob Newhart, of course, played a psychologist in The Bob Newhart Show.