After a West Beverly football game is canceled because of the gang violence at the opposing school, Brandon meets with Jordan Bonner, the class president from the rough South-Central school, who together they decide to make a stand by inviting some of the students from the school to a West Beverly High dance, being headed by Brenda and sponsored by Gil Meyers. Meanwhile, Kelly goes to meet with her long-absent father. Also, David gets a DJ gig at the dance and a groupie, who is Sue, much to Donna's jealousy.

Dylan's estranged mother, Iris, returns to Los Angles which resurrects old family hostilities for she doesn't trust Jack with handling Dylan's trust fund, as does Jim. Brandon continues gambling and splurges his winnings on skis and a new car stereo. Meanwhile, David and Steve meet with the eccentric Icon Records Company president Curtis Bray, who tells David that he will give him a recording deal only if he fires his personal manager Steve. Brenda spends the entire weekend in her bedroom moping about her lost relationship with Dylan, while dreaming evil dreams on doing physical harm to Kelly whom she unfairly blames for her and Dylan's breakup. Also, Andrea goes to a luncheon for Yale acceptances where meets her old friend Jordan Bonner.

After dissolving the trust fund, Dylan, Jack and Christine enjoy the good life together on a friend's yacht at Marina del Rey. But they are all under observation by unidentified men. Meanwhile, finances force Kelly's mother to put their house up for sale. Brenda, Donna and Cindy take a class in self-defense. Brandon continues gambling and starts losing money totaling $500 which makes Duke rather angry, but lets Brandon slide his losses. Andrea get invited on a date with Jordan. Also, David meets with Serge Menkin, his new recording manager, who insists that David record some different rhythm tracks.

With the possible sale of the Taylor house, Kelly gives her mother and prospective buyers a hard time. David and Donna plan to throw Kelly a surprise 18th Birthday party at the Peach Pit. But things take a unexpected turn when the guests get an even bigger surprise from Kelly when she collapses due to an overdose of diet pills. Meanwhile, Steve badgers Brandon into joining him on a TV dating game show and Steve wins a date with an attractive girl named Celeste Lundey.

Brenda and Brandon are dateless for the Senior Prom. A school announcement is made that any student caught at Senior Prom drinking, intoxicated or with illicit drugs will be suspended from school and prevented from graduating. Footballer Tony Miller asks Brenda to prom on the day of the event, and Andrea asks Brandon at the last moment after her date, Jordan Bonner, gets ill. Steve takes Celeste Lundey, while Dylan naturally goes with Kelly. Donna doesn't eat all day so that she will fit into her prom dress. She is hit harder by pre-prom champagne than the rest of the gang, appears to be drunk at prom, and ends up collapsing in front of Mrs Teasley.

With 24 hours until graduation, Andrea frets with Brandon over her coming valedictorian speech and her college choice of California University or Yale, as does Brenda with Minnesota. Meanwhile, Dylan gets a windfall when he inherits his trust fund worth $10 million, as well as another surprise visit from his eccentric mother Iris, while he reconsiders his college choice of Berkley or California University. On graduation day, David and Donna are the MCs at the Senior Breakfast gathering while Steve meets with the gang to create something to remember them by.