It's winter break and Kaitlin Cooper has returned home from her Montecito boarding school.

Kaitlin starts going out with Johnny with the sole motive of making Marissa jealous. Seth starts getting nostalgic as he prepares for his Brown interview.

Sandy and Matt's hospital project hits a roadblock. Kirsten and Julie run into troubles of their own with their matchmaking business. Marissa confesses her feelings to Johnny. Summer finds out out about Seth.

Kaitlin prepares herself to head back to school. Ryan has doubts about his relationship with Marissa after helping out Sadie. Kirsten and Julie make plans for a Valentine's Day party.

Ryan and Volchok make a deal after a fallout at prom. Sandy is chosen as Man of the Year, but this sparks the DA to dig deeper into his involvement with the hospital problems. Marissa goes and sees Kaitlin at her boarding school and Seth visits the Newport Group HQ and lights up the joint.

It is graduation day for Ryan, Seth, Summer, and Marissa at Harbor High School. After graduation they all went out to eat and celebrate their graduation. Ryan's mother gave him a new car as a graduation present. Marissa is going to spend a year on a boat with her father as her graduation gift. Seth finally got into RISD for second semester. Summer is still going to Brown University in the fall. Volchok is still mad at Marissa and Ryan so he decided to crash Ryan's car.