Navid and Blaze News employee, Gia, launch an investigation into student drug use at West Beverly, which leads them to Annie's boyfriend, Jasper, over his history of past drug use which he claims to be over with. While Annie wants to believe Jasper's side of the story, she becomes doubtful when both Navid and Gia tell her that Jasper has always been using. In the meantime, Navid receives dating advice from Samantha Ronson. Liam gives up on trying to win back Naomi, and seeks company with Ivy at the Edison while Teddy sets his sights on her as well. Worried that Adrianna will relapse into drugs, Naomi and Silver enlist Navid's assistance to talk to her, but he is too consumed by his ego and jealousy to care about her anymore. Meanwhile, Dixon reveals his situation with Sasha to Debbie and Harry, prompting Debbie to do some investigating to see if Sasha is telling the truth. Also, Jen and Ryan meet up with Pharrell to watch a performance of N.E.R.D.

Adrianna's new romance with pop star Javier continues to blossom, while Navid continues to work up enough courage to tell her how he feels. Jen has taken control of Naomi's finances and puts her on a tight budget, resulting in an instant meltdown by Naomi. Without her credit cards, Naomi is too distracted to realize Liam is in need of support to deal with the departure of his father, so he turns to Annie for comfort. Despite Spence's suggestion, Teddy refuses to end his relationship with Silver, and the two decide to spend the night together. Ivy invites Dixon to spend the summer in Australia with her and Laurel, but the idea doesn't go over well with his parents. Harry and Debbie's problems escalate when she finds out that Harry has been hiding Dixon's gambling issues from her. Meanwhile, Jasper returns to resolve things with Annie.

In the second season finale, after spending time with Liam and seeing his bravery in confessing his theft to his parents Annie finds the courage to confess to her parents about her hit and run. Jasper gets jealous over Liam and Annie's new closeness and sets fire to Liam's boat, leading to a fight between Liam and Jasper. Naomi secretly reveals to Ryan that Jen's baby is his, and Ryan who is upset that Jen will not let him be in the baby's life drives drunk and ruins the school sign. Dixon and Ivy go through a rough patch after he tells her about kissing Silver, but the real disappointment comes when he finds out he can't go to Australia with her. Adrianna and Navid have a public reconciliation and Adrianna must make the decision of whether to go on a year long tour with Javier. Silver decides to leave the decision of whether Teddy can handle both a relationship and tennis career up to him, who is upset when he finds out that his father tried to bribe Silver to end the relationship. The episode ends with Naomi being taken advantage of by a certain teacher, and realizes the desperation of the situation because she has already falsely accused him of harassment before.