Teddy begins to feel more comfortable in his own skin and decides to visit a bar in West Hollywood where he soon realizes he forgot his wallet and is forced to turn to Ian for help. Annie is ready to take her relationship with Charlie to the next level but is mortified when his friends catch a glimpse of her in lingerie. Now a single father, Ryan turns to Debbie for help and the two end up hooking up. Navid deals with the fallout of having turned his father in for employing underage girls in his pornography business by turning to Silver. Adrianna is oblivious to Navid's situation due to her new found fame.

Teddy and Ian share a kiss. Naomi jumps back into the dating world when she notices one of Ivy's hot surfer friends Zach and tries to impress him by pretending to know how to work a surfboard.

Adrianna rents a mansion and decides to throw a housewarming party complete with an ice skating rink and elves. All is great in Adrianna's world until Victor decides to reveal Adrianna's secrets to the media. Annie decides to skip the party so she can take care of Liam, which leads to the two of them rekindling their old romance in Dixon's bed. Ivy's reconciliation with her father doesn't go quite as she planned. Teddy and Ian discuss their feelings and decide to keep their relationship quiet for the time being, unaware that Dixon saw them share a kiss. Meanwhile, Navid and Silver share their feelings and realize they both feel the same way. Naomi returns home from the party to find an unexpected visitor.

Naomi is taken hostage in her own home by an out-of-control Mr. Cannon who also lures Silver into the situation. Annie and Dixon's cousin Emily from Kansas comes to town for an extended visit, but Emily immediately gets on Annie's nerves. Dixon confronts Teddy about his kiss with Ian and promises to keep his secret. During surf practice, Ivy takes a nasty spill that makes her question her ability to compete in the surf competition. Adrianna's world continues to crumble when she appears on a talk show to tell her side of the story, and she is blindsided by a surprise guest. Given Adrianna's disastrous situation, Navid and Silver continue to keep their hook-ups a secret.