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.

The Walshes welcome Valerie Malone, a young and charming family friend from Buffalo, who moves into Brenda's room after she leaves for England. But unknown to everybody, Valerie is secretly revealed to be a manipulative, cynical and callous woman with a taste for drugs and hard liquor. Meanwhile, Donna returns from her summer stay in Texas and claims that she's over with David, who's doing a video for his film class about his travels during the summer. But that evening, Donna has an emotional breakdown when she runs into David at a nightclub. Steve returns from his summer vacation in Hawaii and decides to pursue Kelly, unaware that she's involved with Brandon. Dylan returns from his summer stay in Baja, Mexico and is revealed to have gone back to drinking since learning that Kevin and Suzanne have swindled him and skipped town with all of his money, and Erica. Also, Andrea and Jesse finally take their new baby daughter, Hannah, home.