Leroy's long-lost father shows up at the School of the Arts, and receives a chilly reception from his son. Meanwhile, Danny deals with father issues of his own as he tries to convince his father that his aspirations to become a comedian aren’t futile.

Chris gets a break while performing with Danny then deserts his partner and finds competition from Leroy; Nicole and Holly room together.

Danny faces the problem of organizing his fellow students into a winning team after accepting a softball challenge issued by an old rival.

Danny meets his hero Bronco Bob from the old western movies. When he finds that Bronco is down on his luck and on the verge of losing his prized horse Prince the Miracle Horse to repossession by a spiteful rival, Danny may be the one to give Bronco the courage to prevail and win his horse back.

Christopher falls for a new student, Julie Chandler, who he discovers to be a coke addict. Her persistent use does not only hurts their relationship but may cause Julie an inevitable-and early-demise. After his parents' separation, Danny feels uneasy when his mother, Gina Amatullo (Played by Betty Karlen), starts dating Lou Mackie.

When Danny finds out that a notable agent regularly attends a local restaurant, him and the gang set out to audition for him right it the restaurant. After a spirited rendition of Prince's "Baby, I'm a Star," the agent sees Danny fit for work as an agent despite Danny's life-long aspirations to be an actor. This puts Danny's acting duties in the school's latest production on the back burner.

When Danny and Chris gain local success with their comedy act, Comedian Sandy Webb, who is running a comedy workshop at the School of the Arts, steals their act and prompts the break up of the pair and Danny's dismissal of comedy. Reggie starts joking around when she realizes that people are taking her portrayal of Lady Macbeth as a joke.

The School of the Arts is plagued by a series of vandalism attacks by unknown vandals. Jesse is upset when he discovers that Nicole has a secret admirer who keeps sending her flowers. With the vandalism and unwanted flowers, Nicole seeks solace in Miss Grant's karate class.

As the new school year beings, a few changes have taken place; Christopher has graduated and is moving on to unknown future, Miss Sherwood has finally published her novel and has moved to Maine, and Ian Ware has joined as a freshman but is discouraged when Mr. Shorofsky opts to retire.

Christopher's cousin is having a wedding with Jesse and Nicole set to dance as a couple. Nicole feels that things have changed and breaks up with Jesse but after getting back together, the two are unsure about where their relationship stands. Danny and Jillian start dating but her over-protective family smothers her.

On the anniversary of Leroy's commencement as a teacher at the School of the Arts, he's faced with accusations that he picked one student over the other for the lead because she was Black. Mr. Shorofsky and Ian butt heads on their tastes in music.

Jesse presents his 30's-styled play to Mr. Dyrenforth who decides to fund the play with hopes of obtaining the prize money of $20,000 from the Kimble foundation. The board decides not to supply the funds but Lou Mackie donates the necessary production money. All is well until Nicole, who plays lead comes down with Laryngitis.

Chris' sister leaves him with her 9-month old son Spike when she has an emergency and Chris is put through the ups and downs of parenting. Mrs. Berg leaves Mr. Dyrenforth to his own devices to attend her brother's anniversary and he learns how valuable she is. Nicole, Dusty, Reggie, and Jillian form a band which creates disagreements between the girls.

Frustrated with not getting work as an actor, Danny goes to the cable access station to get his own show. While in the building, he walks onto the set of "Mr. Whacky's World" and gets a job playing Noodles. With expectations to remain Mr. Whacky's stooge, Danny's left conflicted. Dusty misinterprets Jesse's friendly gestures for a romantic interest.

When Tina comes to visit Leroy, he plans to make her a believer in the Christmas spirit. Between studying and working, he makes little time for Tina which leaves her despondent. Mr. Shorofsky is getting his tonsils removed and two kids sharing his room think he's Santa Claus.

After an eventful party, Miss Grant is frustrated to learn that Danny and Nicole have not shown up for an important rehearsal. That frustration turns to grief when they learn that Nicole was killed while being driven home by a drunk driver, Mickey Garth. With the school grieving, Jesse takes it the worse vowing to kill Mickey.

After rekindling her relationship with her high school fling, Lydia learns that her lover makes a living as a stock swindler. Ian becomes jealous when his father starts hanging around the school, and hits it off with his friends.