In order to impress a girl, Arnold becomes the ringleader of a student strike formed to protest the new school dress code. However, things take a turn for the worse when he is the only one suspended from school.
When Sam gets bullied by the Gooch at his school, Arnold tries to stand up to him but is unsuccessful. So he decides to get the new Italian exchange student to fight the Gooch in exchange for the promise of a date with the unsuspecting Willis.
Willis paralyzed friend, Stuart, who was once a terrific gymnast, comes home to visit. Drummond and Willis surprise him by naming a gymnasium after him and inviting the US Olympic Gymnastics team to the ceremony. However, Stuart makes it known that he is fed up with everyone's charity.
When Sam's little-league baseball-coach quits, Drummond takes over - but Drummond's coaching methods antagonize the other kids' parents. Meanwhile, Willis yearns for an expensive car as his graduation present.
Upon hearing that Sam's favorite morning show host will be losing his show due to cancellation and replaced by Maggie's exercise show, Arnold organizes a letter-writing campaign to try and save the show.
As part of his cub scout project, Sam must go to a retirement home and adopt a grandparent to work on a model airplane. However, when his adopted grandparent storms out on him, Sam is left feeling down in the dumps.
Kimberly returns home from school in Paris to surprise Drummond on his birthday prompting Arnold and Willis to try and match her special gift, they decide to change their name to Drummond, until Willis suddenly has second thoughts.
Arnold's innocent action of setting off a model rocket ship attracts international attention when the school project lands on the Russian Embassy building! Can Drummond and the others clear up this misunderstanding before they are branded international terrorists?
Arnold faces being permanently grounded when Drummond gets a call from school saying he was caught in the boy's bathroom with a bottle of whiskey, in violation of the school's zero-tolerance policy on alcohol. Arnold must find a way to explain the misunderstanding: He was trying to stop a friend who was actually the alcoholic beverage's owner from imbibing.
Putting his career and reputation on the line, Drummond covertly takes a job on the assembly lines at one of his Trans-Allied factories as part of an attempt to get in touch with his employees and make recommendations to boost morale and production.
Arnold is traumatized after becoming a street mugger's latest victim. However, Arnold puts up his bravado in front of his friends, claiming he held his own ... until a classroom exercise brings Arnold's true emotions (which he tried to conceal to the knowing Drummond) to the surface.
Arnold and Sam learn that their new friend, a street performer, has epilepsy. Their emotions become a ball of confusion and misconception ... until someone very close to them (namely, Pearl) shares her experiences with the disorder.