Red thinks Pricemart checkout girl Stacey is perfect for his lovelorn son. The girl impresses Red when she justifies her dubious customer relations with a phrase dear to his heart. Red encourages Eric to ask her out and he even offers to assist. But when Red talks to Stacey, she says she's interested in someone else. Meanwhile, Jackie and Donna give Big Rhonda a makeover for her first date with Fez.

Eric doesn't know what to do when Red says 'I love you', so he decides to say it back, but learns that Red was drugged when he said it. Fez buys Rhonda a box of candies for Valentine's day, then can't help but eat them all. Jackie tells Kelso to get a job so he can buy her something nice for Valentine's day, and he finds a career that suits his interests and hobbies at the same time.

Kitty decides to throw a neighborhood barbecue after she wins a year's worth of hot dogs. Eric is upset when he learns Casey is invited, so he devises a convoluted plan to make Casey look bad in front of Donna. Kelso and Jackie seek relationship advice from Cosmo to uncover the root of their problems. Fez can't get past second base with Rhonda; Hyde's fed up with how the guys talk about the girls all the time.

As punishment for Donna going away to California, Bob transfers her to a Catholic School, which means that Donna won't get to see Eric as much. Eric is determined to fight for their right to be together, until he sees Donna in her new school uniform. Jackie and Hyde get caught making out in the basement; Eric and Donna try to convince them to tell Kelso what's going on.

When Fez decides to introduce his new girlfriend, Nina, to the gang, Kitty offers to throw a dinner party for the event. The guys resent being dragged to a dinner party, while the girls are excited at the thought of a grown-up night.

The gang will be split in half when high school graduation is over: Eric and Donna are all set to move into their Madison apartment, while poor Fez is about to be deported. The love triangle amongst the others grows more heated as Hyde and Kelso compete over an indecisive Jackie. But this tense situation is put aside so that the six friends can go camping together the night before graduation. Laurie tags along and dramatically changes Fez's life. Back at the Forman house, Red gives Kitty medication to help her deal with her depression over Eric's imminent departure.

A representative from INS is coming to find out if Fez's marriage to Laurie is for real. To avoid deportation, Fez must stay with the Formans and get on Red's good side. Donna encourages Kelso to take responsibility for his actions by talking to Brooke about the baby. But for some reason Brooke decides to let him off the hook.

Jackie's mother, Pam Burkhart (Brooke Shields) unexpectedly returns from Mexico. Everyone tries to convince Jackie to forgive her mother and welcome her back into her life. However, when Pam starts dating Bob, Donna and Jackie realize that Pam is still a gold-digger. Donna and Jackie agree to do whatever it takes to break their parents up. Kelso is scared to leave for police academy, but the guys force him to go.

Much to Eric's chagrin, Donna agrees to be Mitch's date to his brother's wedding. While there, Fez meets a beautiful girl and pretends to be rich to impress her, but the big news is the shockwave Mitch makes at the wedding..... Meanwhile, Kelso takes Brooke to a baby class.

It's Thanksgiving, and while Kitty prepares for the feast, Eric is making plans of his own, and they don't include dinner at home. He wants to go to a Styx concert; the rest of the gang is busy helping Hyde and Angie get ready for the opening of the record store.

When Brooke leaves Betsy in Kelso's care, he's ecstatic. His happiness soon ends when he notices that Betsy cries every time he holds her. Leo's offers to help Kelso with the baby only causes him more grief. Meanwhile, Kitty shows signs of jealousy when Hyde stays with Jackie throughout a car show while Red goes off and forgets about her.

Jackie is offered her dream job, but unfortunately, it's in Chicago. She wants to know what her future is with Hyde, but he's unwilling to answer. Kitty and Donna are both still reeling over Eric's new job, and both try, in their own ways, to get him to change his mind. The son of one of Red's buddies from the Marines arrives in Point Place, and the guys take a liking to him when they find out what his dad does now.

Hyde returns from a Las Vegas sojourn, confronts Jackie about Kelso and finds Leo has mismanaged the record store; Kitty makes an audio tape for Eric and admits experimenting with the boys' stash.

With memories of Eric still fresh, Donna worries how the gang will react now that she's dating Randy. Meanwhile, Fez tries to impress a coworker at the salon.

Kelso returns on New Year's Eve 1979 to celebrate, while Red and Kitty rethink their plans to move to Florida.