Forced to attend summer school following the police crashing Naomi's after-prom party, Naomi, Silver and Adrianna form a tight bond with one another, while Annie finds herself more isolated from her friends and family as she worries about her hit-and-run. As summer draws to a close, the gang hangs out at the Beverly Hills Beach Club, where Naomi and Silver meet Teddy, the son of a famous movie star. Meanwhile, Dixon and Silver work to save their relationship, but it may be too little too late.

Naomi is still furious with Annie from prom night and contemplates sending out a sexually explicit text message of Annie as payback. Silver is convinced that she and Dixon can mend their broken relationship, but Naomi and Adrianna convince her to give him some much-needed space. Liam attempts to apologize to Naomi for what happened on prom night and denies sleeping with Annie, but refuses to reveal who he was with. Meanwhile, Liam and Dixon join the surf team, in an effort to keep Liam's stepfather from sending him off to military school. Adrianna helps Navid, now in charge of The Blaze News, land an interview with Teddy, but she is shocked with Navid's interviewing tactics. Ryan continues to pursue Jen , who continues to play hard-to-get.

Annie is humiliated that the entire school received her sext message and is on a mission to reveal Naomi as the sender of the revealing photo. Harry and Debbie attempt to discuss Annie's situation but the conversation only causes more tension, leading Harry to open up to Kelly about his family problems. Dixon meets his dream girl, Sasha and sparks immediately begin to fly, though he fails to reveal his true age. Silver continues to get over Dixon while Adrianna and Navid deal with Teddy's presence in their life. Liam, fed up with the lies between Naomi and Annie, retreats to his garage to work on a mysterious project. The gang joins Teddy on his father’s yacht for an afternoon of ocean-filled drama

Kelly and Silver deal with the shocking news that their mother, Jackie, is dying of breast cancer. Kelly doesn’t want to be sucked back into her mother’s bad behavior, but Silver feels differently. Navid's world is turned upside down when Adrianna reveals that she needs time alone, but turns to Teddy for attention. Jen continues to manipulate Naomi and manages to convince Naomi to lend her a large amount of cash. Jasper rescues Annie from a bad date and the two forge a bond that will be hard to break. Harry accompanies Ryan to a bar for some guy time and attempts to be his wing man.