Joey questions Dawson's state of mind when he and Pacey decide to lead her and their friends to a secret location party on a golf course hosted by Matt Caulfield, a wealthy and snobbish student connected to a clique of spoiled rich kids from school, infamous for their complete and utter debauchery. Meanwhile, Jack's ex-girlfriend, Kate Douglas, arrives from Rhode Island for a visit while nursing a broken heart, but is unaware of Jack's coming out. Also, Jen's first date with Henry is a Valentine's Day she won't soon forget when he passes out after donating four pints of blood to pay for their romantic dinner at a fancy restaurant.

Joey is chosen to be part of a group of students to paint a school mural, but when hers is defaced before the unveiling, Dawson offers words of encouragement while Pacey takes action and risks suspension when he goes in search of the culprit whom he suspects to be Matt. When Andie's PSAT scores rank among the best in the country, she feels tremendously guilt-ridden and gambles with everything she has worked for by telling Principal Green about the previously stolen PSAT test. Also, Pacey moves in with his brother, Doug, when their divorced sister and her kids move back into the Witter house and take over Pacey's room.

Joey relies on the support of Pacey and A.J. to rally the students in a major school protest against the school superintendent, Dr. Fielding, after he forces Principal Green to resign for expelling Matt Caulfield who destroyed Joey's mural after the guy's wealthy and powerful parents threaten the school board with a lawsuit. Meanwhile, Dawson and Gail both go back to their respective places in back and in front of the camera to produce a piece about the ongoing school protest which ruffles more than a few feathers of the school board hierarchy as well as Gail's old rival; a reporter named Sherry Eisle who "stole" Gail's old job back in Philadelphia and is now covering the story in her own self-serving and bias way.