Adam Wilde returns to his home town of South Heads to take up the position of student counsellor at South Coast University. But it's a bitter-sweet appointment for Adam. His predecessor was tragically killed four weeks earlier in a car crash, along with three other locals. Adam discovers a community still reeling from the loss and also struggling with the mystery that surrounds the accident. The car's driver, Craig, now in a coma, is the only person who has the answers to the question on everyone's lips - what really happened that night?

Grace tries to hide the truth about the accident from the injured Craig. Sasha threatens her father, that she will reveal all in her counseling.

What is Elly's mysterious connection to the vindictive registrar? Heath and Freya's trip is full of mystery.

Andy and Mel try to dig themselves out of a mess. Simon cools off the relationship between himself and Elly. MJ decides to give Adam another chance. Diane's plan convinces Sasha it's worth returning to Headlands. Despite Freya's best efforts to avoid it, she finally meets Heath's mother. Craig burns the incriminating photographs - and is shocked to discover who took them!

Simon's scheming forces Maddie to take extreme measures. Ben has trouble adjusting to the real world. Ben overreacts and attacks Andy. Adam has a fiery confrontation with Heath.

Heath is about to make the most important decision of his life. Adam has a terrible suspicion about Mick's past. Maddie finds out her internship. Andy becomes jealous about Mel and Kieren's blossoming relationship.

Adam discovers the identity of his father. After seeking out Daryl for answers, Craig is told he used to be a big-time dealer! Sasha's anger is bubbling over Heath and Freya's engagement.

Sasha is determined to find out the truth about Freya, while Grace decides drastic action is required to turn Craig's life around. Andy's new characterisation goes awry and Elly considers her life-changing choices.

Craig's trial seems to be going from bad to worse, and Wiley's evidence threatens to make or break Craig's case. Maddy questions Sam's motives in their relationship.

Elly and Jessica's relationship is becoming tense after the student magazine reveals that her mother influenced her winning the conference position. Sasha comes up with a plan to get rid of Freya and enrolls Toby into her scheme. Craig's trial is coming to an end. Under Maddie's influence, Wiley changes his testimony. The deliberation of the jury provokes a reversal situation. Adam wants to surprise MJ at the bar, but is very surprised to see someone else on the stage.

Greg's romance with Freya is now publically known. This creates a huge scandal in Headland. Sasha, devastated by the whole publicity, is worried about her mother going missing. Her lack of self-control adds even more drama and spice to the already disastrous situation . Freya takes this opportunity to exhibit herself as the victim and gains Adam's sympathy. Meanwhile, Kieran is trying to gain Mel's favour back. Grace is putting some tremendous effort to make Palermo feel at his place in his new home.

Palermo's son and ex-wife are showing up at Grace's apartment. This new intrusion in Grace's life complicates her already fragile relationship with Palermo. Things between Andy and Mel are also becoming more complicated when Andy surprises Mel and Kerian at the shoot of a commercial. Greg is thinking of selling Headlands Hotel. Will finally finds out that his wife has been working as a pole dancer!

Nathan shows up at Palermo and Graces' place. He expresses the wish to stay with them for a little while. This places Grace in an awkward and undesired position. Will and Kate' marriage is in trial. Will does not seem to be able to forgive Kate and Kate ends up again in the arms of Adam. Toby wants to go back home and suggests Kate to come with him. Kate finally accepts. Craig is moving into the hotel and tries at the same time to break up with Maddie but fails in telling her the truth.

Sasha succeeds in gaining a new position at the hotel. However, Heath remains suspicious about the new ownership and the changes in the hotel policies. Toby informs Will that Kate and himself are leaving that night. Will, under panic, acts foolishly. However, all he wants is to save his marriage. Will Kate accept despite his unwise attitude? Nathan has adapted very well to the Headland environment. He is not quite eager to go home with his mother.

The situation is still very complicated at the Palmer's house. Palermo and his ex-wife finally comes to a custody agreement whose stipulations are not to Grace's taste. Craig is still trying to terminate his relationship with Maddie. He has another girl in mind. Andy is starring in a commercial which will end up being a very embarrassing experience. Kate has eventually decided to stay. However, Toby has not changed his mind. What will become of Sasha? Will surprises a conversation between Adam and Kate which suggesting that they should remain "just" friends...