Bailey is sober for a week. Callie gets jealous because Bailey is spending much more time with Sarah than with her, so she tries to help Bailey, but she can't. She goes to Sarah and tries to find out why Sarah is helping Bailey so much. Sarah tells her that she doesn't love Bailey, because she has a new boyfriend. Callie gets drunk and Bailey moves back to the house. Julia starts skipping school in order to hang out with Griffin, and she starts to get F in history, but he tells her to go back to school, and she goes. Claudia is convinced that Grace doesn't care> about her and Owen, so she makes up a story about a reporter just to spend some time with Grace. But she is more concerned about the reporter.

Griffin holds back the truth about his financial problems to Julia. Bailey and Sarah decide to move in together, believing they will resolve their problems that way. All Charlie's dates turn out to be a disaster.

Claudia gets help from a psychologist. Griffin discovers that he cannot fight with his growing attraction to Rosalie anymore. Julia rediscovers the academic world in a college literature class.

Ned does his best to keep Julia by himself during the holidays. Daphne's irresponsible mother visits and Daphne realizes just how much she is like her. Bailey has teach him Owen that stealing is wrong.

When Charlie can't take care of him, Bailey takes Owen on a camping trip. Kirsten and Paul talk about adopting a baby. Daphne is still having hard time trying to take care of Diana. Ned convinces Julia to move into his room, but when Maggie talks her out of it, he hits Julia.

Bailey finds out that Owen may have a learning disability. Charlie tries to convince Daphne to return to San Francisco. Julia makes Ned see a psychiatrist after she agrees to stay with him if he gets help. Kirsten moves to Chicago with her parents.

Charlie and Baily fight over Owen's custody. After learning of Ned's abuse from Maggie, both Bailey and Charlie try to reason with Julia to break up with him, but she refuses. Sarah finds out that her mother is getting remarried.

Victor turns the house into a haunted one for Owen on Halloween. Julia realizes that she has feelings for Evan. Charlie and Kirsten explore having their own baby. Bailey finds out that Will is back in San Francisco and is chauffeuring wrestlers.

Bailey continues dating Holly, a very interesting girl. They spend the night together and end up under the sheets. Griffin fells that he has a debt to the Salingers, now that they payed for his expensive hand surgery. Claudia tries to return to playing her violin, but gets upset when she finds out she's no longer the best. Charlie and Kirsten try to buy illegal hormones, but end up realizing they should get pregnant naturally.