A group of the kids go to the beach for the day. Despite stating that she will no longer be his cover as his girlfriend, Ellie, who doesn't really get along with most of the others but especially Paige, decides to go along on Marco's invitation. Also along as the chauffeur is Paige's openly gay older brother, Dylan. Dylan, attracted to him, suspects Marco may be gay. Marco, also attracted to Dylan, is not ready to come out, especially to his supposed best friend Spinner, who is openly homophobic. Marco goes out of his way to hide his sexual orientation. This includes showing an interest in team sports and going on a date with an unsuspecting Hazel. Meanwhile, Archie is staying at the Jeremiah's temporarily as he has a cold and Spike does not want him to infect Jack. Beyond ruining his weekend with Ashley as the unexpected chaperon, Craig thinks that Snake's symptoms may be a manifestation of something beyond the common cold.

Spinner does not react well to Marco coming out to him. Without initially actually outing Marco to the general populous, Spinner does whatever he can to freeze Marco out of his life. Spinner spreads the news amongst their closest group of friends, all of who think Spinner is acting like an idiot. Marco will need all the support he can when he learns first hand what it's like to be gay in an intolerant society. A specific incident pushes Marco further in the closet. Meanwhile, Snake's initial medical diagnosis is possible leukemia. He tries to make light of the situation, which affects Emma more than anyone. Regardless of the final diagnosis, his actions, in part because of the possible diagnosis of leukemia, benefit Degrassi as a whole.

Ellie is facing some stresses in her life. Her soldier father has just been shipped overseas, to which her alcoholic mother does not react well. She has an interview for what she considers her dream co-op job working for Caitlin at the radio station doing stories on social causes, but she's up against "perfect" Paige for the sole position. These stresses end up having a physical manifestation, which Ellie, ashamed, feels she needs to hide. Ellie gets an unexpected source of support. Meanwhile, Terri has been receiving roses from a secret admirer. She suspects it's Toby, but really is hoping it's shy Rick.

The year-end Junior Formal is fast approaching, and Marco is in charge, except when it comes to a date. Problem is, Marco's too nervous to ask Dylan out at all, let alone ask him to the prom.

Paige and Spinner decide to take a day off from school. Paige invites Ashley to come along and Ashley announces she's leaving Degrassi. Paige and Spinner have to show her a good time and try to convince her to stay. Meanwhile, Emma discovers Mr. Simpsons will and worries his chemotherapy has failed.

The end of the year dance has arrived at last! Jimmy wants everything to be perfect for Hazel but nothing goes as planned. Sean's guilt gets the best of him and he confesses to stealing Mr. Simpson's laptop. Earning Mr. Simpson's forgiveness, however, is going to take much longer than Sean anticipated.

Season 4 begins with Paige, Spinner, Marco, Jimmy, and Hazel entering Grade 11. Spinner buys a car with the money he's earned at The Dot, and Paige receives a summons to testify at the trial of the guy who raped her.

The pressure of the trial combined with confronting Dean sends Paige into a destructive downward spiral. Craig receives a generous 16th birthday present from his late father, which causes a rift between Craig and Joey.

Marco faces unexpected hurdles in the race for Student Council President when his opponent Alex threatens to out him to the entire school at the election assembly. Meanwhile, Liberty and Emma have a confrontation of their own when Liberty starts spending time with Emma's ex, Chris.

Rick returns to Degrassi, professing to be a changed man. Everyone is suspicious Rick might hurt another girl the way he hurt Terri so a plan develops to run Rick out of Degrassi for good. J.T. is frustrated with his relationship with Manny because they have barely even kissed yet. When a mishap leads to Manny seeing J.T. naked, J.T. begins to wonder whether their lack of physical contact is because he can't measure up to Manny's expectations.

Craig proceeds to embarrass Ashley during the reception at her father's wedding. Things go from bad to worse when Joey confronts him.

Ellie starts playing cards for fun with Craig, Alex, Dylan, and other friends. However, Alex raises the stakes when she encourages the group to play with real money. Ellie joins the high-stakes game but ends up gambling with her future rather than for fun. Paige has a secret affair with Mr. O and begins to wonder whether he has been telling her the whole truth.

Paige and Matt Oleander desperately try to keep their relationship a secret but it seems to be an impossible mission when Mr. Simpson spies them together at the park and Manny spreads rumors about them to Hazel. Emma has a ladies night and all her girlfriends are head over heals for Emma's new neighbor, Chester.

Dylan would like more from his relationship with Marco, meanwhile Spinner and Jay attempt to break into Degrassi.

Facing the pressure of year-end exams, the furthest thing from Marco's mind is what happened a year ago - when Dylan stomped all over his heart. Marco takes this as a sign that he's over Dylan for good.

When Peter receives a new car for his birthday, he quickly becomes a frequent face in the street racing scene. Peter gains a new friend, equally into the scene...a recently returned Sean! Immediately it is apparent that Emma and Sean are oozing chemistry. Will things heat up again between them? Marco and Dylan find an apartment in the Annex perfectly close to school, but Marco has to contend with helping Dylan find roommates, choosing courses with Ellie and throwing Paige a blow-out going party all at the same time.

Things intensify between Emma and Sean, and when she takes time off from Peter to consider her relationship with Sean, Peter takes action. To settle things, Peter and Sean decide to have a midnight race that ends in disaster. Ellie's cutesy new roommate Amberley is making dorm life miserable, so she writes an "anonymous" article about roommates for the school newspaper. Ellie suddenly finds herself intrigued with her editor -- and without a place to live.

Jay turns to Emma for help with Sean's legal trouble. Ellie gains the attention of an editor of the university newspaper but he may be interested in more than just Ellie's writing.

Spinner is distressed after receiving the results of his career aptitude test. He convinces Jimmy to go into business designing t-shirts together but the stresses of industry might break their friendship.

Craig returns to Degrassi for a music festival and Manny wastes no time in hooking back up with him. As Craig further embraces the rock star lifestyle, Manny has to decide whether the new Craig is the guy she really loves. Much to Liberty's frustration, Mia and JT are the new "it" couple at Degrassi. When tensions reach a breaking point, Mia demands to know the truth about JT's past.

Manny is moving back in with her family and Emma is not agreeing with this idea. Instead of talking it out with Manny, Emma starts a protest for the upcoming cheer competition that is being held at Degrassi because the school from which the kids that killed J.T. will be coming.

After Paige has a massive panic attack in class, her professor offers her one last chance in the form of a huge workload to be completed over the holiday weekend. Poor Paige tries to keep up appearances for her family but the pressure reaches a breaking point. Peter grovels to Darcy but her forgiveness won't come without a high price.

Paige has one goal: to return to her former pre-Banting glory. She's going to get back to doing what she does best. Everything - and that includes dating. Paige surprises Spinner by asking him out. Nothing serious, just casual.