The twisted Naomi continues her personal quest to destroy Annie's personal and professional life by spreading a false rumor about the existence of a nude photo of Annie, which causes a further divide between Annie and Dixon, as well as Annie's parents who continue to worry about her continuing slide down a dark path. Meanwhile, Liam decides to defy his stern and semi-abusive stepfather and try out with Dixon and Teddy for a spot on the school's surfing team. Elsewhere, Ryan worries about his romance with the manipulative Jen who begins to show off her true colors to him.

Silver and Kelly continue to argue about caring for their dying mother, in which Kelly wants nothing to do with their drunk of a mother, Silver wants to spend her time caring for her. While dealing with schoolwork and caring after school for Jackie, Silver is paired with Teddy for a class project where they find they have more in common when he tells her that his mother too died from cancer. Meanwhile, Naomi continues her relationship with Richard, but continues to flirt with Jamie. Although coming clean with Sasha, Dixon realizes that he and her are in two different places in their life and decides to break up with her, but she later tells him some "life-changing news". Tensions escalate between between Debbie and Harry when she walks in on Harry and Kelly talking in his office, and Debbie's jealousy and suspicion gets the worst of her. Elsewhere, Annie and Jasper's relationship is put to the test when he attempts to convince her to steal a car while shooting a scene for his student film. Also, Liam butts heads with Ivy, the newest member of the surf team. Most of the gang attend a Halloween costume party at the Beverly Hills Beach Club where Adrianna dresses up as Marilyn Monroe to help her deal with the end of her relationship with Navid.

Kelly continues to support Silver as she deals with Jackie's declining health, despite that she is conflicted about whether or not she can forgiver her mother for the life-long pain and abuse she caused to both her and Silver. Navid confronts Adrianna about her renewed drug use, but this time, she rudely tells him off for turning his back on her. Meanwhile, Harry and Debbie are surprised when Annie informs them she would like to invite Jasper over for dinner at their house. Despite Annie telling Jasper to be on his best behavior, the dinner proceeds very uncomfortably for everyone. Dixon, still alienated and upset with his entire foster family, especially Debbie over her handling of the Sasha situation, declines to join them, and instead teams up that night with Ivy and Navid to set a plan for Liam to tell Naomi the truth about Jen despite knowing that Naomi will not believe them, even with evidence. Elsewhere, Ryan and Jen's relationship is taken to a new level when he convinces her to go on a weekend camping trip. Also, Naomi and Jamie's secret romance is finally found out when Richard and his mother walk in on them in Richard and Jamie's dorm room which finally forces Naomi to come clean about her plans to get accepted into CU.

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.