Adrianna reveals the secret that she's pregnant individually to both Naomi and Navid, who handle the news differently than expected. When Dixon reveals the depths of his feelings to Silver, their relationship takes a surprising turn when she reveals some facts about herself and that of her feelings of love. Meanwhile, Tabitha surprises Annie and Dixon with an unexpected belated Christmas gift of a car: which both Debbie and Harry disapprove of Tabitha trying to buy her grandchildren's affection after she also announces that she is leaving town to re-start her acting career with a job on a TV soap opera in New York. With a massive heat wave hitting the L.A. area, Annie and Ethan decide to to take a day-long escape to Tabitha's house Palm Springs for a romantic time alone.

Naomi returns from her vacation in St. Bart's excited to spend time with Liam. However, their first date is uneventful since they have nothing in common which leads Naomi seducing Liam aboard his his newly built boat. Adrianna and Gia bond after they meet during an AA meeting and establish a support system for each other which leads to the two sharing a kiss at the Beach Club. Meawnhile, Jasper begins to blackmail Annie by threatening to tell the authorities about her hit-and-run accident if she breaks up with him. Navid and Dixon devise a plan to remove Jasper from Annie's life by planting cocaine in his locker, but they never anticipate the outcome of a school drug search. Dixon attempts to rekindle his relationship with Silver, while Silver hides her true feelings for Teddy. Also, Harry and Debbie run into Kelly while attending a school function and the jealous Debbie confronts Kelly about her having a crush on Harry.

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.