Donna is acting out over her parents' break up and takes up smoking. Eric gets caught holding one of her cigarettes in the school yard and is suspended. Even though Eric tries explaining what really happened, Red punishes him. Fez and Hyde go on a double date, set up by Fez's host parents; Hyde can't decide which girl he likes better. Jackie and Kelso argue over how many stuffed animals she can have in his van.

Jackie misses Fez's attention when he gets a girlfriend, who passed up Hyde; Eric and Kitty go to a movie together.