The twisted Naomi continues her personal quest to destroy Annie's personal and professional life by spreading a false rumor about the existence of a nude photo of Annie, which causes a further divide between Annie and Dixon, as well as Annie's parents who continue to worry about her continuing slide down a dark path. Meanwhile, Liam decides to defy his stern and semi-abusive stepfather and try out with Dixon and Teddy for a spot on the school's surfing team. Elsewhere, Ryan worries about his romance with the manipulative Jen who begins to show off her true colors to him.

Dixon and Sasha continue their whirlwind romance despite his friends advice that he's moving too fast with it. That weekend, Dixon and Sasha drive up to Napa's Wind Country to sample some wine. But on the return trip, a flat tire leads to the discovery of a car trunk full of pornography, and a series of lies that Dixon makes up. Annie's new confident attitude quickly disappears when she realizes that Jasper, a new student at West Beverly, is nephew of the derelict that she hit on prom night. Navid assigns Silver and Gia to interview Jasper for a news piece about his uncle whom was a student at West Beverly, and who left behind a $100,000 inheritance to the school. Annie tries to befriend Jasper who confides in her about how his uncle lost everything, ending up homeless, and of Jasper's uncertainty with it all. Elsewhere, Navid continues to grow insanely and immaturely jealous over Adrianna's friendship with Teddy, with whom she confides about her uncertainty with Navid and of his envy. Elsewhere, Liam finally finds a way to get revenge on the psychopath Jen to make her reveal the truth to Naomi about her seducing him that night of the prom party when he discovers that Jen scammed a fortune out of a French husband that she married for money. But Jen has other ideas to slither out of the predicament she's in.

Naomi learns that her SAT test scores may not be high enough for her to be accepted into California University. She devises another devious plan to be tutored by Richard, the son of the school's dean of admissions, but she quickly turns her attention to a hot CU student named Jamie. Meanwhile, Dixon continues down his own dark path by continuing to lie to Sasha about his real age. But Sasha already becomes suspicious about Dixon's age. After doing a little underhanded investigating, Sasha learns that he's still a senior in high school, and she breaks up with him. Navid and Adrianna go on a double date with Teddy and his latest girlfriend. But Adrianna's growing feelings towards Teddy make for an awkward situation, and it leads to Navid's renewed jealousy. Elsewhere, Silver accompanies Adrianna to a local Alcoholics Anonymous meeting where they surprisingly run into Silver's mother, Jackie. She tells Silver that she would like to re-establish their relationship. But Silver angrily refuses because of the years of unapologetic abuse. Later, Jackie confides in Adrianna about a shocking health problem she has.

Naomi clashes with the Blaze's new faculty advisor, Mr. Cannon, over her racy gossip news segment and she is reprimanded in front of her peers which is a major humiliation for her. After failing to convince Navid to back her opinion, Naomi decides to tell a white lie about Mr. Cannon sexually harassing her which soon spins out of control. Meanwhile, Adrianna is now the lead singer of the all-girl band, the Glorious Steinems while she deals with the band's bass player, Lila, who happens to be Navid's latest girl pal. Shortly after, Adrianna confides in Silver and Naomi about her romantic feelings for Gia, as the two go out on their first official date. Elsewhere, Teddy decides to test Silver's commitment to him by attempting to make her jealous by flirting with random girls. Dixon and his birth mother, Dana, continue to bond while he begins to fall into bad habits by doing on-line gambling which she encourages. Liam catches his stepfather with another woman and confronts him with a fist-to-the-face which leads to Liam leaving home. Also, Debbie and her yoga instructor, Kai, share tea and conversation, but Kai oversteps his boundaries when he makes a pass at her. Elsewhere, Annie confronts Jasper about him stalking her and trying to win her back. But later, Annie receives a phone call from Jasper who tells her that he intends to kill himself unless she returns to him.

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. 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. Meanwhile, Liam and his father, Finn, reconnect and attempt to rebuild their relationship as Liam moves in with him. Navid and Dixon host an underground gambling party that results in Dixon quickly becoming out of control with betting and he ends up owing Teddy's father's bookmaker, Mark, a lot of money. Debbie reveals to Harry that her yoga instructor made a pass at her, which forces the two to finally discuss their recent problems. Annie, aware of her parents marital troubles, turns to Liam for support. At the end, Naomi gets an unpleasant surprise when her psychotic and revenge-seeking sister, Jen, returns to Beverly Hills, with her French husband in tow, where they announce that they are the new owners of the Beverly Hills Beach Club.