Social Chair Marissa tries to plan this year’s carnival but is having much difficulty due to a little pest named Taylor. Sandy is surprised to find Kirsten has been released from rehab but instead of informing him, she has been living with another woman named Charlotte who she met in rehab. Julie and Sandy meet with the Dean and Dr. Kim to discuss Ryan and Marissa’s future at Harbor High. Later Ryan and Marissa partake in a similar meeting. Elsewhere Jimmy meets a man and feels more than open to discuss his money problems with him.

Jimmy must make once more the difficult decision to leave or stay with his family; Kirsten returns to the Cohen household while Charlotte has to leave her house; Marissa and Ryan face a possible separation; Taylor lords over the school musical and makes Summer and Seth her stooges.

Marissa struggles with attending a public high school, and her new friends make Ryan jealous; Charlotte's ruse is up when she learns that Kirsten did not inherit any money from Caleb; Julie's mansion is repossessed, leaving her with nothing; Taylor's power play dethrones Summer as commitee chairman, who then learns an interesting secret about her and Dean Hess.

Ryan decides to make a life-changing decision that Sandy reluctantly supports; Marissa looks to her new friends to help with her latest crisis with Ryan; Summer and Seth go on a mission to reveal a secret between Taylor and Dean Hess; Charlotte makes Julie an offer that she can't refuse.