Burned by her journalism teacher's scathing criticism, Jo turns out a front-page story linking him to a drug bust.

Blair is thrilled that her name is going to be part of Eastland, since a large amount of money from her grandfather's estate is being donated for the building of a new library. However, while doing a story on him for the newspaper, Natalie uncovers a shocking truth, Blair's grandfather was a member of the Ku Klux Klan.

Natalie discovers that Tootie has a hearing problem. Tootie forces Natalie to keep quiet and refuses to get some help for her problem.

Blair makes a new friend in Leo, a young man whom she tries to mold despite the fact that he's mentally retarded. His mental retardation throws Blair for a loop and she has a hard time accepting his handicap.

Graduation has everyone rushing around and Natalie and Tootie are worried that their isn't going to be enough time for Jo and Blair to say goodbye, especially since Blair and Jo are at each other's throats, as usual.

As graduation day arrives, Monica is furious that Blair's father won't attend, Rose is furious at Charlie due to his sudden tranformation into a big spender and Natalie and Tootie are scared that they will lose Blair and Jo as friends when they leave for college.

A strange man tells the girls that years ago a murder occurred in the shop. Later, when the girls see Mrs. Garret with a knife they assume that she's possessed by the murderer's spirit and is out to get them.

Cupid can be perverse: all the girls old boyfriends happen to show up just before the Valentine's Day dance.