Dylan and Kelly finally call their relationship quits due to him spending more time with Erica, Suzanne and Kevin, and Kelly openly expressing that she doesn't trust Suzanne and Kevin over their continued presence. Erica tells Dylan that she overheard her mother and boyfriend talking about moving to South America, while Kevin and Suzanne easily convince Dylan they want to relocate Kevin's new chemical company to Arizona. Meanwhile, Brenda finds old feelings for Dylan returning when he gives her an opening-night gift medal before the play. Dylan considers investing in Kevin's business offer by financing it, as does Jim who agrees to be a silent partner. Elsewhere, David sees danger of his drug use returning when working with a new rock band for the CU's Mardi Gras. Andrea is hospitalized and has strange dreams, fearing she may lose the baby. Also, Brandon tries to get to meet with an elusive Chancellor Arnold, after he sees that his name is not on a list of task force members to meet the president, thinking that his times with Clare may have cost him the trip to Washington. But, Brandon eventually learns that his name being absent from the list was just a typo mistake all along.

In the two-part season finale, Brandon goes to Washington D.C. as a part of the college task force to meet the president. Kelly follows Brandon to Washington to get him out of a jam when Clare and Lucinda arrive at the hotel to pursue him. At the CU Mardi Gras, David impresses pop star Kenneth "Babyface" Edmunds, and his recording manager Ariel with his keyboard music and Donna catches David in a very compromising position with Ariel. Steve runs into Celeste who's now with John Sears. Kevin and Suzanne get married in a semi-formal ceremony where he persuades Dylan to cut out any outside investment in their business offer. Jim becomes angry at Dylan for making such a rash move and Dylan fires Jim as his financial holder. Dylan then goes to a bank and gives Kevin full power-of-attorney control over his money, unaware that Kevin and Suzanne have had a hidden agenda for Dylan's inheritance all this time. After her major success in the CU play, Brenda gets a scholarship offer to study acting in London and she pays a visit to Dylan's place before leaving. Also, Andrea and Jesse experience the joys and fears of parenthood after their daughter is born.

Kelly's continued involvement with Professor Finley and his conflict against the college faculty to preserve his tenure frustrates Brandon since he knows about Finley's hostile and paranoid attitude. Meanwhile, Valerie seeks a reward for helping Dylan recover his money and asks both him and Jones to cut her in on a large share. David's old flame Ariel Hunter, now a music company rep, returns and woos Ray to get him to sign a music deal, much to Donna's worry. Also, Andrea flirts with trouble when she starts seeing Peter while Jesse is away on business.