After missing curfew a few too many times by staying over late at Dylan's house, Brenda is grounded and is forbidden to go surfing with him in Mexico for the weekend. But Brenda secretly decides to go anyway and asks Kelly and Brandon to help cover her tracks. Meanwhile, Kelly becomes acquainted with Jake Hanson, a handyman and an old friend of Dylan's, who eases her fears over her mother deciding to marry David's father and both become attracted to each other, despite their age differences.

Brenda faces the wrath of her parents after her disastrous return from Mexico. In a desperate attempt to keep Brenda and Dylan apart, Jim bans him from coming over to their house which only alienates Brenda even more, especially when Brandon and Kelly take out their troubles on Brenda over lying for her during her surfing trip. When the Taylor house suddenly floods from a ruptured water pipe, the Walshes reluctantly agree to host Mel and Jackie's wedding at theirs. Meanwhile, Kelly mourns the departure of Jake when his job at the Taylor house is done. But he returns during the wedding and things heat up between them.

Brandon and Steve both flip over an attractive volleyball player, named Brooke Alexander, who is Steve's new volleyball partner. Kelly and Dylan start spending time together, becoming more attracted to one another. A new girl in town, named Nikki Witt, flirts with David who shows her his song writing talents. In Paris, a French photographer persuades Donna to start modeling for him, while Brenda tries to fit in more with the Paris crowd by taking up smoking.

Dylan and Kelly decide to keep their romantic liaison a secret when Brenda and Donna return from Paris. During a welcome-back party for Brenda and Donna, Brenda confides in a guilt-ridden Kelly that she sees that something has changed about Dylan while she was away. Meanwhile, Brandon discovers that Brooke is not the girl of his dreams after he sees little amusement in her repeated racist and stereotypical comments. Also, Steve finally lands a gig for David at the end-of-the-summer clambake at the beach club.

Steve stays close to Andrea (now confined to a wheelchair with two broken legs) who is keeping on top of the Feds investigation of the school break in; He fears that she may find out his criminal secret. Steve gets more worried when the sleazy school janitor, Hutchins, demands more blackmail money to keep quiet about Steve's copy of the master key . Meanwhile, Brenda, now dating Rick, freaks out when she sees Dylan dating Kelly. Dylan gets bad news regarding his appeal over his SAT' score; His frustrated peaks and he hits the road. Jim's dull work life gets a lift by his new attractive secretary Dottie and Rick's admiration of his career.

Voted the most beautiful senior at West Beverly, Kelly fears that no one's looking beneath her good surface, while she becomes hurt over Dylan not wanting to show her his finished editorial whom he shows to Andrea first. Meanwhile, Steve forgets he's dateless when he goes out with Brandon and his parents to a Lakers basketball game and is randomly chosen to win $10,000 for a half-court shot. Also, Brenda reconsiders her college choice of going back to Minnesota.

El día de la graduación, la pandilla recuerda los momentos más memorables de los últimos tres años. Andrea pronuncia su discurso de graduación y todos celebran. Dylan también tiene un misterioso encuentro con su difunto padre, quien le aconseja que no necesita ir a la universidad para demostrarse a sí mismo. En cambio, Dylan le pide a Kelly que haga un viaje por Europa con él durante el verano. Steve también decide ir a la Universidad de California para estar cerca de sus amigos, mientras que Brenda decide regresar a la universidad en Minnesota. La noche de la graduación, todos se encuentran en las colinas de Hollywood, cerca del gran letrero de Hollywood, para crear su logo en el letrero para que toda la ciudad los recuerde por los años que pasaron en West Beverly High School.

Steve invites Brandon to stay with him at a Malibu beach house, owned by one of his mother's industry connections. They throw a farewell party for Brenda before she leaves for college in Minnesota. Kelly returns from Europe, without Dylan, who has been rejected for acceptance into Berkeley. David seeks out affordable off-campus housing. Brandon has a surprise encounter at the beach house with Jill Fleming, daughter of the owner, who mistakes him for a burglar and threatens him with a can of mace. Andrea visits Gil Meyers and frets over her decision to stay in California for college instead of leaving for Yale.

Brenda returns to Beverly Hills to find her bedroom taken over by Brandon and her parents angry that she dropped out. College registration is too much for Dylan who has a kindred spirit, so he and Brenda pair for a fishing trip to talk about their future. David and Donna try to audition for the DJ's on the California University's radio show, while Andrea tries to get in with the university's newspaper, The Condor, and soon clashes with the egotistical student editor Josh Richland. But Andrea has a more friendly meeting of minds with Dan Ruben, her dorm faculty advisor. Meanwhile, Steve tries to get Brandon in on the fraternity life on the CU campus by pledging the Kappa Epsilon Gamma (K.E.G.) fraternity.

Jim sets a lonely Brenda up on a blind date with Stuart Carson, the son of his business associate and both he and Brenda hit it off. Dylan decides to buy a new car, regardless of the price. Due to his late night schedule, David causes problems with Kelly and Donna over his lack of housekeeping. Kelly tells Dylan that they should start seeing others as a result of her growing relationship with John Sears. Meanwhile, Andrea finally loses her virginity when she and Dan move beyond being "just friends."

Brenda calls Dylan from jail in the hopes of keeping her arrest a secret, but he is forced to tell her parents. Brenda's friends avoid her out of fear of being accessories after the fact and Kelly acts especially bitchy because she is tired of Dylan coming to Brenda's rescue. Brenda faces felony charges, as her crime was a federal offense. An FBI agent who had gone undercover with the activists offers her immunity in exchange for her testimony. Kelly apologizes for shunning Brenda. Andrea gives Donna a healthy puppy (Rocky II) to take her mind off Rocky's death. Steve and his overbearing father, Rush, take on a baseball star and his dad in a father/son golf tournament. Steve catches his father cheating and forces him to complete the game honestly. Lucinda receives a grant for her movie and leaves the university. Josh threatens to expose Brandon's affair with Lucinda unless he endorses his campaign for student president. Brandon calls his bluff and Josh eventually has second thoughts.

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.

Emily flies back from Paris to attend a seminar at La Jolla. She asks Brandon to meet her at the airport, claiming to have just a four-hour layover. She actually has a week until the beginning of her seminar, but Brandon breaks her heart by revealing that he is dating Kelly. When he sees her back to her hotel room, they share a passionate kiss. Steve and Griffin organize a holiday rave at an abandoned house. Valerie helps them out in the hopes of getting back in Steve's good graces. David and Clare accidentally post the notice about the event on a computer bulletin board for lesbians, who constitute most of the guests. The house has very poor wiring and continually blows fuses. Griffin uses too much electricity, and the house catches on fire. Ray rescues Steve and Valerie, who were fooling around in one of the bedrooms. Kelly and a girl named Allison are trapped in a downstairs bathroom with no means of escape. The firefighters try to reach them as they are engulfed by flames.

Steve tries to secure the R&B group "Jade" for a Valentines Day telethon at the Peach Pit After Dark. Meanwhile, Brandon coaxes Kelly away from Professor Finley and his work at his newly opened commune, but only for the moment. After moving out of the Walshes and into a hotel suite, using some of Dylan's money, Valerie comes onto Ray who's having problems with Donna and pressures him into an affair. Ray's mother, LuAnn, figures out that Ray cheated on Donna when he doesn't come home after that night, and covers for him when Donna comes calling asking of Ray's whereabouts. Also, Andrea with Jesse meets Peter and his wife, but that doesn't disrupt their feelings for each other.