Fonzie's former girlfriend and fellow motorcyclist, Pinky Tuscadero comes back into his life, making him realize he still loves her. She wants to be in a demolition derby with him but Fonzie states that it's no place for a woman.
After being injured in the head at the derby from "The Millachi Crunch". Pinky is hospitalized. Fonzie gets revenge with the brothers and wins the derby, he also realizes that he wants to be more than just Pinky's boyfriend.
Richie's plans to party while his parents are out of town are ruined when Fonzie invites the very pregnant wife of one of his oldest friends to stay in Joanie's room and orders Richie to keep an eye on her until her husband returns from a road trip.
Richie's secret scheme to convince sophisticated Cindy Kendall that he has his own apartment by exchanging bedrooms with Fonzie is foiled when her furious father comes looking for her in the middle of the night.
The Fonz accepts a sophisticated, older woman's invitation to play tennis at her country club, but later discovers that the game his pretty new lady is playing may not be confined to just the tennis court.
Fonzie enters his shy, visiting cousin, Angie, into an Al's Drive-In sponsored publicity event for the "Magilla Book of Records" to help the timid teenager uncover his famous Fonzarelli self-confidence.
Richie Cunningham basks in glory after winning his high school basketball game with a lucky shot in the final seconds of a nail-biter until a rival team and their femme fatale kidnap him to keep him off the court.
Tired of being treated like a servant in her own home and searching for self-worth, frustrated housewife, Marion Cunningham, gets a job at Al's Drive-In. But Al's teen customers start leaving when Marion's waitressing takes a back seat to motherly meddling, and an emergency meeting is called in the Fonz's office to decide her fate.
Marion Cunningham is forced to reveal Fonzie's secret plan to graduate with Richie's senior class just before Principal Conners' startling announcement at the high school prom that puts the graduation ceremony itself in jeopardy.
Fonzie's friends convince their principal to let the night school graduate participate in Jefferson High School's commencement ceremony, but then must find a way to help the Fonz make his valedictory speech.