Kelly and Silver are shocked when Donna arrives in town. Annie and Dixon take a road trip to visit someone from Dixon's past while Ethan spends his spring break working for Habitat for Humanity. Naomi also decides to work for Habitat when she learns that Liam will be there.

Now that they have finally sold their home in Kansas, Harry and Debbie have a yard sale, Beverly Hills-style. Meanwhile, Donna talks to Kelly about her separation, and later search for a place for Donna to open a clothing store; Dixon helps Silver in her recovery; Liam and Ethan's unlikely friendship continues; and when a scandal involving Naomi's father comes to light, her trust in Annie begins to falter.

Adrianna and Navid are forced to make an impromptu exit from the prom when Adrianna goes into labor. Dixon confronts Ethan about Silver when he notices that Ethan might be developing feelings for his girlfriend. Meanwhile, Annie reaches the breaking point when Naomi accuses her of trying to hook up with Liam, and some of her peers (still angry about the after party fiasco) decide to take both verbal and physical action against her.

Forced to attend summer school following the police crashing Naomi's after-prom party, Naomi, Silver and Adrianna form a tight bond with one another, while Annie finds herself more isolated from her friends and family as she worries about her hit-and-run. As summer draws to a close, the gang hangs out at the Beverly Hills Beach Club, where Naomi and Silver meet Teddy, the son of a famous movie star. Meanwhile, Dixon and Silver work to save their relationship, but it may be too little too late.

Navid wakes up in the hospital but has no memory of who pushed him down the stairs. Adrianna visits Navid and following her conversation with him, makes a life-changing decision about her addiction to pills. Silver and Teddy bond over the loss of both of their mothers and unexpectedly get close. Liam, Dixon and Ivy learn that Naomi and Jen will be attending the horse races and devise a plan to finally reveal the truth to Naomi about her evil sister. Annie and Jasper sneak out even though Harry and Debbie have grounded her.

Naomi enlists Ivy’s help in reducing the awkwardness with Liam and the three decide to go on a hike, something Naomi has never done. Naomi discovers Ivy’s alterior motives and confronts her by pushing her face in the sand. Naomi, Silver and Adrianna go shopping in the Palisades and run into Annie and Jasper. Jasper blackmails Annie with photographic proof of her hit-and-run, but she gives Jasper an ultimatum that puts her mind at ease. Adrianna and Gia’s friendship continues to develop when the two throw a pity party for themselves. Silver and Teddy toy with the idea of trying to make a relationship work. Ryan meets free-spirited Laurel at a bar, but soon they move to her car so they can get to know each other even better. A surprise visitor shows up on the Wilson’s doorstep.

Annie and Liam test out the waters with his new boat, where they share their darkest secrets. Little do they know that someone is nearby and decides to share an explosive flame of gasoline with Liam's boat. Liam finally tells Naomi their relationship isn't working, leaving her more alone than ever. After a late-night dance, Naomi turns to someone for help, but he ultimately helps himself to her. Adrianna is offered the opportunity of a lifetime but is torn about the direction to take after Navid confesses his true feelings for her. Teddy discovers that Spence tried to bribe Silver and takes it upon himself to seek revenge in a most confrontational way. Ryan is delivered some mind-blowing news about his past with Jen when a mysterious package arrives on his doorstep, causing him to head down a disasterous path. Dixon and Ivy's summer vacation plans in Australia comes to a screeching halt when he confesses to kissing Silver. Harry and Debbie face a major hurdle in their marriage when she learns the truth that he has been hiding in order to protect Dixon.