Mini is under threat. When Grace brings Franky into the Charity Fashion Show, Mini sacks them both and re-imagines the show in her own image to cement her power. Despite appearances, her relationship is also rocky; Nick can't wait forever for sex. As Mini struggles to maintain control, Liv acts out in the worst way possible: giving Nick what Mini failed to. Mini discovers but pretends it hasn't happened. Mini loses her virginity at the wrong time, with the wrong person, and for all the wrong reasons.

Nick is the school star: he's hot, he's the son of a proud father, he's a rugby hero, and he's got the perfect arm-candy in Mini. But Matty's reappearance has unsettled him. As he watches his brother slip effortlessly into new friendships, old wounds are re-opened and Nick's game suffers. He realizes that everything he thought he wanted--rugby success, his father's approval--is crushing him. He leaves it all behind and puts his faith in Matty.

Mini, Grace, Franky, Liv, Alo, Rich, Matty, and Nick are on holiday in Morocco--in a crumbling villa with no roof, water, or electricity. While Mini gets together with Alo (demanding that he tells nobody), Franky tells Matty that she wants to end their relationship and she's easily attracted to suave Luke, whose party they crash. She agrees to go off with him, but Liv learns from a local boy that Luke is a notorious drug dealer and has planted 6 kilos of dope in the group's truck. Liv,Grace, and Matty pursue the fleeing couple, but the van crashes. Back at the college Grace is in a coma in hospital while Matty has run away in Morocco.

Blaming the gang for what happened to Grace, her father, Professor Blood, bans her boyfriend Rich from seeing her in hospital, but he manages to sneak in and discover that she has awakened but is being moved to a hospital in Zurich. After the Bloods have left for Switzerland, Rich moves into their house and, to the near detriment of his friendship with Alo, becomes obsessive,sleeping in Grace's bed and watching her old home-movies. However, when Professor Blood comes home he tells Rich that Grace died in hospital in Zurich without recovering--Rich's recent conversation with her was only a fantasy.

Seeing Alex as her only close friend, Liv is upset when he goes away for a weekend; to make things worse, she feels a pain in her side and sees a lump, but she confides only in Principal Doug, who tells her he's leaving the college. Rich is too busy revising and attempts to get through to Franky, whom Liv still blames for Grace's death, and Mini comes to nothing. When Matty returns from Morocco, Liv takes him to see Franky but she has no desire to speak to him and another confrontation with Mini leads to a fight and Mini crying out that she is pregnant. A shocked Liv once more feels the pain in her side but a visit to the doctor proves that there is no lump: it was a psychosomatic reaction to Grace's death. Feeling better, Liv visits Grace's grave with her younger sister Maude, Doug, and Rich, and they end up dancing.

Mini is rushed to hospital but the baby is saved. As the exam results come through and Alex gets ready to spend his gap year in Thailand, Matty apologises to Rich for causing Grace's death. Franky heads for Birmingham to seek out her mother but is told that she is dead by her sister Clara, who returns her to Bristol. At Alex's farewell party Liv makes up with the other girls and Grace appears to Rich for one last kiss. Clara tells Franky that their mother is actually in a psychiatric hospital and takes her to visit. Nick accompanies Matty to the police station to give himself up and Mini has her baby, with Alo offering to support her. Hearing the baby cry Rich turns to the camera to say goodbye to the viewers.