Dawson returns from spending the summer in Philadelphia with his mother, and on his way home meets a beautiful young woman who brings trouble to his otherwise ho-hum life. Meanwhile, Joey, who has frozen Dawson out all summer, realizes she is still reeling from their unexpected break-up when she sees him again, but may have found an unexpected new friend for their junior year; Jen gets more than she bargained for when she takes on the fascist head cheerleader; Mitch accepts a new position as Capeside High's varsity football coach; and although Pacey tries to be brave, he has had a lonely summer without Andie.

Dawson is stunned when Eve presents him with a sneak peak at the PSAT test and everyone is tempted to cheat including Joey, whose scholarship is dependent on her SAT scores, and Andie, who is desperately fighting for acceptance to Harvard. But when the test is stolen, it's Pacey that Dawson accuses since he sees Pacey slipping back to his old ways. Meanwhile, Jack is insistent that the football team is purposely beating him down because he is gay.

Dawson plays detective when Eve's mysterious ways, including breaking and entering and stealing, cause him to wonder about her reasons for being in Capeside, but the secrets he uncovers may drastically change the lives of others close to him. Meanwhile, Joey's misgivings of Rob lead her to crash his date with Andie but her good will backfires on her; and Jack goes against Jen's wishes and sets up a rendezvous for Henry.

Dawson is torn about telling Jen the scandalous secret he has about Eve and even more distressed when his mom unexpectedly returns from Philadelphia. Meanwhile, Andie accuses Joey of sabotaging her chance to reunite with Pacey; and Jen shocks the entire town with the entertainment she has hired for the Annual Homecoming Queen Gala and shocks the very shy Henry even more when she asks him to be her escort.