When Brenda finds herself falling in love with Dylan, it results in Brandon's wariness and Jim strongly opposed to it due to Dylan's lifestyle and his father who gets indicted for corporate financial fraud. Meanwhile, Steve meets a girl who will be speaking at an AIDS seminar at school which leads everyone into discussing condoms.
Cindy and Jim get an interesting proposition from an eccentric, swinging couple while spending a weekend together in Palm Springs. With their parents away, the twins throw a party in their house and Brandon falls victim to the West Beverly High party scene when he ends up drinking a few too many tequila's, gets into a car accident, and is arrested for drunk driving.
Brandon learns some pitfalls of parenthood when he starts dating Melissa, a senior girl who has a six-month-old baby. Meanwhile, Brenda and Kelly win free skydiving lessons on a radio call-in show. After a few days of skydiving practice, they decide to set aside their fears of falling and take the plunge, literally.
Brenda throws a slumber party and invites Kelly, Donna and Andrea over for the night. But the evening turns sour when Kelly's bad girlfriend, Amanda Pacer, crashes the party and plays a game which brings out secrets that threaten the friendships between all of them. Meanwhile, Brandon and Steve go out together for a night of cruising and club hopping in which they end up getting duped by two girls that steal Steve's car.
The Walshes allow a young Latino girl named Karla Montez, (their maid Anna's niece) to use their address so she can attend West Beverly High School. Brandon becomes intrigued with Karla, but he suspects that she's hiding something due to her wariness and a strange man following her around. Later, when Jim arranges a party for one of his clients, Brandon causes a scene when he finds Karla at the party serving drinks and thinks she's being used as cheap labor.
During Presidents' Weekend, the gang goes to Palm Springs, where Dylan and Brenda plan to meet at a hotel for some time alone. But Brenda forgets the name of the hotel where she's supposed to meet Dylan. Meanwhile, David, wanting to fit in with the gang, ditches Scott and their trip to Magic Mountain to take Steve, Kelly and Donna to his grandparents' house, which is supposed to be empty. And Brandon stays home to help Nat at the Peach Pit, and discovers a secret that an apparently sarcastic boy named Curtis has been hiding.
A right look at the right time and in the right place in a local park gets Brandon a role on a TV series and he gets to work with the teenage lead actress Lydia Leeds, while becoming an instant celebrity at school. But Brandon learns that Lydia may only be using him to get back at her own boyfriend and co-star on the show. Meanwhile, Brenda becomes another celebrity when she plays the role of singing waitress Laverne while covering for Brandon at his job at the Peach Pit.
Brenda, tired to being treated like a teen, moves out on her own into a single apartment owned by a hippie stand-up comedienne. Meanwhile, Brandon runs for junior class president against his local competition, Michael, in which Brandon he is faced with two running tactics offered by Kelly and Andrea.
Brenda is filled with horror when she discovers a lump in her breast, which calls for a biopsy. Meanwhile, the upcoming SATs put extra pressure on everyone, especially Andrea and Steve during a study night together when an intimate moment happens between them.
As Brandon interviews Roger, the school's tennis star, he discovers that Roger's golden-boy appearance hides deeper demons. When the gang gets their SAT scores back, Donna becomes deflated by her low SAT score, which reveals her learning disability.
Brandon gets more than he bargained for when he and Steve volunteer to coach a Little League baseball team made up of spoiled little kids with smart mouths who are playing Peach Pit owner Nat's misfit team. Meanwhile, Jim (recovering from a back injury) howls at Brenda's request to keep a stray dog.
Everyone scrambles to get dates for the big annual spring dance. Kelly asks Brandon to the dance, offending Steve who has nobody while Andrea ponders whether or not to go to the dance. At the dance, Brenda and Dylan become more intimate and end up sleeping together for the first time, and David shows off his cool dancing. Also, Steve reveals to Brandon that it is his birthday but does not feel cheerful at all because his mother recently told him that he is adopted.
The Walshes excitement over Jim's promotion is short lived when he reveals that it means moving back to Minnesota. Steve gets upset with Brandon over him leaving as well as other problems. Meanwhile, Andrea offers herself to Brandon as a goodbye present, while Brenda faces the thought of moving away from Dylan.
With school out for the summer, Brandon decides to leave the Peach Pit and go to work for as a cabana boy at the posh Beverly Hills Beach Club which is run by the tough-mined Henry Thomas. But he must sometime tell Nat that he's leaving. Meanwhile, Brenda and Dylan face breaking up after her pregnancy scare, especially when Jim and Cindy get angry at Brenda after he's forced to tell them her prom night tryst with Dylan.
While Brandon gets close to a fellow cabana girl at the beach club, named Sandy, a member takes Brandon under his wing with his hard-to-refuse offer which causes problems at home. Jim and Cindy discuss joining the beach club for the enjoyment. Meanwhile, Brenda finds an outlet to her emotions when she, Donna, Andrea and David being taking drama classes in summer school taught by Chris Sutier.
Cindy's mothering instincts upset both Jim and Brenda after she brings an injured Dylan to recuperate at their house after he has a accident while surfing in dangerous conditions, while Dylan's father is arrested for income tax evasion. Kelly gets involved with a shy volleyball player named Kyle who is reluctant to make a move on her. Meanwhile, David and Donna are reluctantly paired for a Romeo and Juliet scene as a class project.
Steve invites Brandon, David and a few of their friends over at the beach club for an after-hours poker game and they all find themselves in trouble when their game is followed by a burglary of stereo equipment and a cash-poor Dylan becomes a suspect for he has lost his hotel suite and his money as well. Meanwhile, Brenda gets burned for sun worshiping with Donna.
Acting as a "big brother" to a 10-year-old boy, Brandon is asked to keep a secret that needs telling about his single mother's physical abuse. Meanwhile, Kelly fears a familial connection to David when his father, Mel, and her mother, Jackie, begin dating. So, Kelly becomes determined to keep them apart. Also, Brenda can't keep the absent Dylan from her thoughts while he is in Hawaii visiting his mother.
With the summer drawing to a close, Andrea and Brenda compete for the attentions of their drama teacher, Chris, who chooses the former over the latter, which puts a strain on their friendship. Meanwhile, Brandon finally buys his dream car, but finds "the fruit of his summer labor" sour when the car breaks down, gets impounded, and Jim gets angry at Brandon for the careless handling of the car's purchase. Brandon also goes to visit Nat at the Peach Pit to ask for his old job back as the place is under construction for a building expansion.
Brandon, Brenda, Dylan, Kelly, Steve, Donna, Andrea and David take an end-of-the-summer camping trip to Yosemite National Park. But in a comedy of errors, they end up stranded for the night in a rundown cabin during a rainstorm and exchange some facts of life with a newlywed couple from the cabin next door. The next day, disaster narrowly avoids Brandon during a hiking trip in the hills with Dylan who is revealed to have fallen off the sobriety wagon.
At the opening day of the new school year, Brenda becomes peeved when Dylan starts spending time with the new transfer student Emily Valentine, while she and Brandon also have eyes for each other. Meanwhile, David is reunited with Scott after he returns from his summer vacation in Oklahoma and finds that his friendship with David isn't as close as it used to be.
Brandon befriends a black family, the Robinsons, which stirs up Beverly Hills when they move in near the Walshes. The siblings include Ronny, a freshman photographer who volunteers to work at the Blaze, and his older sister whose ghetto boyfriend is roughed up by a racist security patrol. Meanwhile, Jim and Cindy try out a new "state of the art" house alarm system which is more of a nuisance than a help.
Dylan's long-estranged, beatnik, zen-freak mother Iris, whom he can't stand, comes for a visit from Hawaii, apparently to stay, which causes him to return to drinking which soon lands him in trouble at a local billiards club after hustling some pool sharks. Brandon tries to help Dylan deal with the situation, but Dylan is too blinded by his ego and pride to accept. Of the rest of the Walshes, only Cindy finds Iris McKay fascinating and free-spirited, while Brenda and Jim find Iris just plain weird. Meanwhile, Steve and Donna decide to play the stock market. But Kelly ...
Brandon and Brenda's handicapped cousin, Bobby, visits the Walshes and a mutual attraction between him and Kelly is complicated more by others assumptions than by Bobby's wheelchair. Meanwhile, David tries asking Donna out on a date. Brenda finally gets her driver's license on the third try, but is hesitant to drive Brandon's car. Also, Emily joins the school newspaper just to be near Brandon.
After Brandon inadvertently tips the school to Andrea's non-district residency after her success in a new article competition, she must move into her grandmother's apartment to prove she lives within district to avoid expulsion from West Beverly. But Andrea's problems only get worse when her grandmother tells her that she will not lie if questioned about Andrea's residence. Meanwhile, no one can convince Steve that his new girlfriend, Christine, is a gold-digger out to get his money.
The gang attends a Halloween costume party at an old brownstone mansion with Steve playing Zorro, Donna dressed as a mermaid in which the costume limits her mobility, and Brenda and Dylan going as Bonnie and Clyde. But the party is highlighted by Kelly's very revealing bewitching costume, but low-lighted when one student makes an unwanted advance on her. Meanwhile, David skips out on the party to meet with Scott where they reminisce about the "good old days" while waiting for an egg fight with some neighborhood kids that never materializes. Also, Brandon and Emily ...
On Scott's 16th birthday, his mother gives Donna and David the responsibility of rounding up people for his birthday party to save it from being a social disaster. But later, Scott finds a gun in his father's office and while showing it off to David, he accidentally shoots himself. David is then filled with conflicting emotions for days after and ends up telling Brandon, and the school, about regretting the way he treated Scott this year. Also, Andrea becomes openly jealous at Brandon for dating Emily who takes up Brandon's time and hers.
Emily leads the gang to an underground nightclub where she attempts to show Brandon the ultimate pleasure with drugs after she puts a hallucinogen in his drink, with disastrous emotional and financial consequences for him when they are forced to flee from a police raid only to leave Brandon's car behind which gets stripped and ripped apart. Meanwhile, Kelly and Donna worry about David who gets drunk at the rave, while Steve and Andrea get lost in the inner city looking for the rest of the gang and driving to the wrong place each time.
Emily refuses to accept the fact that Brandon no longer wants to see her. She slashes her own tires and pretends that her parents are out of town so that Brandon will invite her to stay over. She sneaks into his bedroom and tries to seduce him. After he makes it clear that he is not interested, she begins to stalk and harass him by making crank phone calls. Andrea also discovers that Emily is the person who has been sending menacing letters to the school paper. Eventually, Emily shows up at Brandon's house and douses the gang's homecoming float with gasoline. Brenda ...
Steve is bothered by the appearance of his old nemesis Chuck Wilson, the former child actor who stared in the TV series Hartley House with his stepmother, Samantha, who is asked to appear in a reunion TV show. After Steve gets suspended from school for getting into a fistfight with the snobbish Chuck who insults Steve's mother and is revealed to know about his adoption, Steve begins to question who is his real mother. Meanwhile, Donna finally agrees to go to the annual winter dance with David, regardless of the teasing she gets of dating a sophomore.
Steve arrives in Albuquerque, New Mexico and tracks down his grandfather, Al Brown, a diner owner. Al explains that his daughter gave up Steve because she was very young and wanted him to have a good home. He sadly reveals that Karen Brown died in a car accident many years ago. Steve leaves flowers at her grave, and convinces an eccentric Santa-like charter pilot to fly him home for Christmas. Back in California, Cindy is depressed about her first Christmas in Beverly Hills. She invites the kids' friends and their families for Christmas Eve dinner, but everyone has ...