Donna and Clare find Kelly's stash of cocaine in their beach front apartment, prompting her to move out to Colin's for an increased drug binge. Despite Brandon's intervention, Kelly refuses help and brushes everyone off. Joe's heart condition again comes out when he collapses after a biplane flight with Jonathan, Brandon and Steve. But Joe does not want anyone else to know because it might jeopardize his football career. Meanwhile, Valerie's old friend, Ginger LaMonica, inconspicuously returns to Beverly Hills and breaks her deal by blackmailing Valerie by revealing about the jewelry theft scam for money. Valerie refuses to pay, until Ginger offers another option: a sordid night with David.

Kelly, still stricken with amnesia, is finally released from the hospital and returns to the only home she can recall, which is her old beach front apartment. Meanwhile, Steve and Brandon secure a production manager, named Terri Spar, for their new newspaper agency, called the Beverly Beat, in order to meet a deadline. Donna's newest designs impress a manufacturer, whose workers she discovers toil in depressing conditions. David attempts to secure a new band for the After Dark and lets the lead singer, Devin, and his band crash at the beach front apartment. Carly reluctantly asks Steve to baby-sit for Zack as she goes out for the evening. Also, Valerie continues pursuing Noah who eventually tells her all about his lonely life and unwillingness to keep a relationship, while Valerie meets a guy interest, a wealthy heir named Cooper Hargrove.

Steve and Janet finally break the news of her pregnancy, which garners hostility from her conservative mother and father, and mixed reactions from his unorthodox father, Rush. Meanwhile, David tries to curb his radio persona in an attempt to make up with Robyn, but is sidetracked by fans wanting more of his love life. Both Matt and Noah offer to move out of the house to make room for Steve and Janet's nursery. Also, Dylan tries to help out a hotel maid who has to bring her two wild sons to work with her. Gina proposes a plan to Noah, to turn the After Dark into a gentlemen's club to make some quick cash.