As the gang of West Beverly begins its senior year, Andrea accuses the new reading teacher and Blaze faculty advisor, Gil Meyers, of sexism when he names Brandon the new editor of the school paper. Meanwhile, David discovers that his summer fling Nikki, is a transfer sophomore student and Donna's new friend. Brenda and Steve become "senior buddies" to two freshmen who are Sue Scanlon, the late Scott's younger sister who has two personalities, and Herbert, an intellectual type. Also, Kelly continues to be uncomfortable and jealous about seeing Dylan with Brenda.

The gang must consider their future and meets with their guidance counselor, except for Kelly and Dylan who agree that college is not for everyone. Meanwhile, Jim and Cindy announce to Brenda and Brandon that they can afford a private college for only one of them. Also, Andrea has the same bad dreams involving walking a high-wire to get into her own college. Brandon and Nikki become even more close, and David walks in on Kelly at a bad moment.

After a West Beverly football game is canceled because of the gang violence at the opposing school, Brandon meets with Jordan Bonner, the class president from the rough South-Central school, who together they decide to make a stand by inviting some of the students from the school to a West Beverly High dance, being headed by Brenda and sponsored by Gil Meyers. Meanwhile, Kelly goes to meet with her long-absent father. Also, David gets a DJ gig at the dance and a groupie, who is Sue, much to Donna's jealousy.

Andrea tries to get to the bottom of a sexual assault accusation against Gil Meyers brought forth by Sue's mother. David and Donna join in on the investigation and find out about Sue's real emotional troubles. Meanwhile, Brandon reluctantly agrees to go out dancing with Nikki, despite not knowing how to dance. Also, Dylan develops a bad cough due to surfing in polluted water.

Mysterious angels cause a miracle that stops a bus and truck from colliding; Dylan is asked to be Santa Claus for a group of disadvantaged children

Gambling addict Brandon multiplies his addition by hiring a school bookie, Jeff, in order to pay off $1,500 of losses to Duke who's now out to get Brandon. Meanwhile, David finally realizes the true nature of the music industry when Serge continues to ignore his hip-hop material and forces him to record a repetitive, syrupy ballad. David goes along with it, but Curtis Bray does not like the new tune and outright terminates David's recording contract. Finally seeing the egotistical, two-faced shark that Curtis Bray really is, and the self-serving hack Serge is, David leaves Icon Records and goes back to apologize to Steve for the way he treated him. Kelly's eating disorder worsens when she starts taking diet pills. Also, Andrea tries to ease Dylan's depression over his father's murder by asking him if she can do an editorial on him.

The Gang plans to go to Magic Mountain for Senior Ditch Day but plans change for Brandon, Dylan, and Steve when a Burt Reynolds fan club eats at The Peach Pit when Nat is sick. Everyone else heads to Magic Mountain.

Brenda and Brandon are dateless for the Senior Prom. A school announcement is made that any student caught at Senior Prom drinking, intoxicated or with illicit drugs will be suspended from school and prevented from graduating. Footballer Tony Miller asks Brenda to prom on the day of the event, and Andrea asks Brandon at the last moment after her date, Jordan Bonner, gets ill. Steve takes Celeste Lundey, while Dylan naturally goes with Kelly. Donna doesn't eat all day so that she will fit into her prom dress. She is hit harder by pre-prom champagne than the rest of the gang, appears to be drunk at prom, and ends up collapsing in front of Mrs Teasley.

Following a little advice from Gil Meyers, Brandon and the rest of Donna's friends join forces to help her in a major school protest when she is suspended from school and is threatened with not graduating for getting drunk on Senior Prom night.

With 24 hours until graduation, Andrea frets with Brandon over her coming valedictorian speech and her college choice of California University or Yale, as does Brenda with Minnesota. Meanwhile, Dylan gets a windfall when he inherits his trust fund worth $10 million, as well as another surprise visit from his eccentric mother Iris, while he reconsiders his college choice of Berkley or California University. On graduation day, David and Donna are the MCs at the Senior Breakfast gathering while Steve meets with the gang to create something to remember them by.

On the day of graduation, the gang thinks back about their most memorable moments from the past three years. Andrea delivers her commencement address and everyone celebrates. Dylan also has a mysterious encounter with his late father who advises him that he doesn't need to go to college to prove himself. Dylan instead asks Kelly to take a trip through Europe with him for the summer. Steve also decides to go to California University to be near his friends, while Brenda decides to to back to college in Minnesota. The night of graduation, they all meet in the Hollywood Hills near the big Hollywood sign to create their logo on the sign for the whole city to see to remember them for the years they had at West Beverly High School.

Steve invites Brandon to stay with him at a Malibu beach house, owned by one of his mother's industry connections. They throw a farewell party for Brenda before she leaves for college in Minnesota. Kelly returns from Europe, without Dylan, who has been rejected for acceptance into Berkeley. David seeks out affordable off-campus housing. Brandon has a surprise encounter at the beach house with Jill Fleming, daughter of the owner, who mistakes him for a burglar and threatens him with a can of mace. Andrea visits Gil Meyers and frets over her decision to stay in California for college instead of leaving for Yale.

Dylan makes summer plans for a trip around the world with Kelly while Brandon counters with a marriage proposal, forcing her to make a decision. Donna tries to cope with Ray's growing hostility as they confront their differences. Meanwhile, Andrea and Jesse go through a tearful going away party at West Beverly high school before leaving town to go to Yale. Also, Jim gets a promotion which means moving to Hong Kong.