Ryan, and the World, are officially introduced to the bi-religious holiday Chrismukkah, thanks to Seth. And Seth insists he has TWO Godly forces helping him as he plays TWO girls. Marissa has some 'discount shopping' to do, and finds herself in an embarrassing situation, or two, or three. Kirsten does something that could cost her more than just her job. Summer and Anna each have very special gifts for Seth, but which one will he like the most? And a new boy enters the Newport scene.

It's New Years and "love" is in the air. A sister returns home, and throws a party. Oliver casts his spell. Sandy and Kirsten find themselves in a rut, and out of their environment. Seth finally makes a decision between Summer and Anna. 2004 is born.

Hailey discovers she isn't as welcome as she might have thought. Perhaps the Cohen house is full? Luke makes some new friends, while Seth and Anna try to tell a friend about their decision. Rooney sings, a lot, and Oliver noses, a lot. Trouble brews.

Oliver plans a trip for the gang, but things don't go as well as everyone might have hoped- except for Oliver of course. Summer really plants herself into "friendship" within Anna and Seth's relationship. Jimmy and Sandy decide to go into business together. Caleb and Julie return from Europe, and Hailey and Kirsten butt heads. Ryan finds himself in the cold.

Sandy and Jimmy have plans to sign papers for the Lighthouse... but is Jimmy ready? Oliver makes his plans official to Ryan, but Ryan just cannot catch a break from anyone and finds himself in an all too familiar position. Summer has a "big" new boyfriend... for a little while. And Julie gets a job.

Changes are happening within the couplehoods of the O.C.'ers. Lines seem to be blurred. Oliver reveals himself as he falls apart, but not before Ryan is completely left in the cold. Someone loses school, one loses work, two lose their partners, and one more loses it all.