Adrianna's new romance with pop star Javier continues to blossom, while Navid continues to work up enough courage to tell her how he feels. Jen has taken control of Naomi's finances and puts her on a tight budget, resulting in an instant meltdown by Naomi. Without her credit cards, Naomi is too distracted to realize Liam (Matt Lanter) is in need of support to deal with the departure of his father, so he turns to Annie for comfort. Despite Spence's suggestion, Teddy refuses to end his relationship with Silver , and the two decide to spend the night together. Ivy invites Dixon (Tristan Wilds) to spend the summer in Australia with her and Laurel (Kelly Lynch), but the idea doesn't go over well with his parents. Harry and Debbie's (Lori Loughlin) problems escalate when she finds out that Harry has been hiding Dixon's gambling issues from her. Meanwhile, Jasper returns to resolve things with Annie.

Naomi and Jen are back to wreaking havoc in each others lives. Just when Naomi thinks she has the upperhand, Jen slaps her back into reality. Teddy invites a nervous Silver to meet his father, Spence, for the second time and the meeting doesn't go quite as planned. Adrianna struggles to write a new song for Laurel and turns to Navid for support, forcing Navid to realize he still has feelings for her. Adrianna records a duet with Javier Luna, a famous young pop singer, who quickly wins her over with his charm. Annie confronts Harry and Debbie about their recent marital problems, resulting in a family discussion about their future.

As a result of falsely accusing her faculty adviser of sexual harassment, Naomi is now required to complete community service and publicly apologizes to her peers for the trouble she has caused. The gang is preparing for the SAT's when Silver disagrees with Teddy's decision to skip college to focus on his tennis career and things grow even more tense when she meets his movie star father, Spence. Liam and his father, Finn, reconnect and attempt to rebuild their relationship. Navid and Dixon host an underground gambling party that results in Dixon owing Mark a lot of money. Debbie reveals to Harry that she kissed another man, which forces the two to finally discuss their recent problems. Annie overhears their parents conversation and turns to Liam for support. Just when Naomi thinks her life is back on track, her evil sister Jen returns to Beverly Hills.

Naomi's little white lie has become the talk of the school, and when she is forced to testify in front of the school board, she drops a bomb that no one saw coming. Annie is finally able to put her relationship with Jasper behind her, but when she and Silver inadvertently drive past the scene of her hit-and-run, the guilt comes rushing back to haunt her. Dixon and Ivy's fake-dating situation continues and the two make a decision that neither one anticipated. Adrianna and Navid share a friendly conversation which doesn't go over well with their significant others, Gia and Lila. An argument between Gia and Adrianna results in Adrianna walking in on Gia and her ex-girlfriend. Liam receives a surprise visit from his father, Finn, just released from prison. Though Ivy has warned Ryan that her mother is trouble, he continues to date Laurel.

Annie comes to terns with Jasper's apparent suicide. Silver and Teddy go on a double date with Naomi and Liam. Feeling rejected, Dixon and Ivy agree to fake date. Adrianna and her band perform for the first time at the Beach Club, and Adrianna takes her relationship with Gia public. Naomi continues to lie about Mr. Cannon after Liam pushes her to move forward with the sexual harassment case.

Naomi immediately butts heads with the Blaze's new faculty advisor, Mr. Cannon , and is reprimanded in front of her peers. After failing to convince Navid to back her opinion, Naomi decides to tell a tiny lie that soon snowballs out of control. Adrianna is now the lead singer of the Glorious Steinems and confides in Silver and Naomi about her newfound feelings for Gia, and the two go out on their first official date. Teddy decides to test Silver by attempting to make her jealous. Dixon and his birthmother Dana continue to bond. Liam catches his stepfather with another woman and confronts him with his fist. Debbie and her instructor, Kai share tea and conversation after yoga, but Kai oversteps his boundaries