Eric and Donna go to the annual Pricemart Ball together while Fez gets a job at Leo's Photohut.

Donna writes a nasty story in the school paper, obviously taking the mickey out of Eric albeit under fake names and playing in the Victorian age, so when schoolgirls see trough the pseudonyms and scold him as cat-killer, he tries to write his own version... Red is startled that Bob has found a new lady friend -bossy Joanne, who picked him up shopping- and furious as she insists on doing the grilling, in Red's view at the very core of manhood. Kelso hasn't bought a dress for Jackie but half of the pinball machine in the diner, hoping for a 50% profit even each time he plays it; alas nobody else does, and Fez surprises with business sense...

Eric convinces the guys to spend a girls-free night bowling, but Hyde scores an instant-kissing chick on the alley, Jill, which kills the plan. Red and pastor Dave have such fun as basketball supporters that it takes Kitty some insisting to remind the clergyman that mass is his Sunday priority, only to hear Red inspired him to resign! Donna is shocked Bob already sleeps with his new girlfriend Joanne, so her ma Midge is completely out of the picture. Jackie is jealous to find Rhonda is already more in the loop and even has a key to the basement and gets challenged to wrestle...

When a tornado comes to Point Place Eric becomes stuck at the radio station with Donna; while at the school dance Kelso is named king, and Jackie gets upset.

Jackie kisses Todd, a colleague of her's, and Eric accidentally sees it.

Michael Kelso overheard his abusive big brother Casey say he's about to meet and probably do it with Donna in "Le Motel"; Hyde insists everybody keeps quiet to Eric, Fez spills the beans. Bob is officially divorced, yet marriage doesn't appeal to Joanne, Red assures her Bob and she are right for each-other. Kelso is determined to stalk Jackie now he believes she's doing it again with a Cheese Palace guy, actually rather sweet. Eric couldn't burst in at the hotel, just wined to Leo in the other honeymoon suite, but after he left someone pulled the fire-alarm...

Jackie finds a way to make up with Michael Kelso who dumped her: he may kiss another girl; Jackie reserves choosing her 'rival'; when she finally leaves the choice to him, his is surprisingly romantic, and yet... Eric is delighted to catch Donna drunk as a skunk in bright daylight because of Casey; Bob is a walkover who lets her get away with everything, regardless of Joanne, but when it gets too gross Red steps in, and Casey seizes the opportunity to dump her, publicly. Just now she comes crawling back, Eric's pointless pride makes him refuse to be her 'second choice'; before he comes to his dumb ass senses (even Kitty uses the term) she decides to emigrate to California, where her ma lives. Afraid that Jackie might enforce her 'way out', marriage because she says so, Michael decides to drive Donna all the way; the long road proves tormentingly fishy, as Hyde had first dragged Fez along stealing dead fish and then decided to hide it in one of Kelso's van's wheel caps

Donna's dad and his partner Joanne are off for a weekend getaway, so Eric and Donna plan a weekend together to prove to themselves that they're adult enough to be engaged. The gang is determined to throw a party at Donna's, and are unforgiving when Donna refuses. Meanwhile, a call from the jeweler makes Kitty think Red is buying her a present, but she finds out the ring is from Eric to Donna while taking 'poor orphan' Hyde shopping for a new coat, which Hyde hates--an Evis-style flashy jacket that looks nothing like Hyde's style. Kitty tries to prevent Red from finding out about the engagement, but Eric lets it slip in anger during one of Red's tirades. The cat's outta the bag--Donna and Eric's engagement is no longer secret.

Since Red ruined Erics life for getting engaged, their rowing gets worse for weeks, even chases the gang away. Kitty signs them up for a charity father-son Point Place Paul Bunyan pioneer event; they still fight and get creamed by Charlie and Mitch, an apparently perfect pair; as events progress the team' temperaments seem to get reversed, but at the end -a loss- nothing has really changed. Hyde doesn't believe Leo has just disappeared, so the gang look for him in his apartment; the new tenant has a note and a gift for Steven...

The Pinciottis learn very quickly that living with Jackie is going to be difficult. Kelso swipes Jackie's panties to taunt Hyde, who has his revenge when Kelso gets a job at the hotel kitchen where Hyde works. Eric receives notice that he must return Donna's engagement ring if he can't make a payment by Friday. His visits to the jewelry store reveal that there's bad blood between Fez and Fenton, the jewelry guy.

Hyde tells Jackie he doesn't trust her being alone with Kelso, Eric gets a new job and Fez has a very disturbing dream involving Kelso.

Fez dreads impending graduation as he probably must return to his lizard-infested country afterward, so he gets Kelso and Hyde to observe a truce in their Jacky-war to join both on a camping trip by the lake with the whole gang, plus Eric's stupid sister Laurie. Kitty is on heavy tranquilizers as she can't handle her 'baby boy' moving out. After a failed ghost prank by the campfire Eric was to skinny-dip with Donna, but ends up screaming butt-naked with Laurie, who next does it in Kelso's van with Fez, who gets even more out of it then sex... Kelso and Hyde's rivalry for Jackie comes to a near fistfight, until she calls out that "it's no fun for me anymore!" The pair realizes that she's been playing them against each other as revenge for their awful treatment of her over the years, and they demand she finally chooses. Next morning they all oversleep and the van is stolen, so the parents are terribly disappointed the kids all miss their own graduation ceremony...