Marissa struggles with attending a public high school, and her new friends make Ryan jealous; Charlotte's ruse is up when she learns that Kirsten did not inherit any money from Caleb; Julie's mansion is repossessed, leaving her with nothing; Taylor's power play dethrones Summer as commitee chairman, who then learns an interesting secret about her and Dean Hess.

Ryan decides to make a life-changing decision that Sandy reluctantly supports; Marissa looks to her new friends to help with her latest crisis with Ryan; Summer and Seth go on a mission to reveal a secret between Taylor and Dean Hess; Charlotte makes Julie an offer that she can't refuse.

Marissa discovers something in Johnny that Ryan lacks and Charlotte convinces Julie and Kirsten to throw a charity event. After discovering fake IDs in Charlotte's purse, Julie confronts her.

When the gang heads to The Bait Shop to see The Subways, Taylor's horsing around causes a major rift between Seth and Summer. Marissa, determined to end the potentially explosive rift between Ryan and Volchok, does whatever it takes to watch out for Ryan. Meanwhile, Matt, Sandy's Newport Group partner, goes above and beyond the call of duty when he learns he has to cut Newport Group staff.

Ryan, Summer, Seth, and Marissa think about what they'd like to do with their lives as they compile their college applications, but they run across several obstacles; Johnny's surfing career takes an unfortunate twist; a revealed secret complicates Julie's friendship with Kirsten.

Ryan, Seth and Summer launch a campaign to get Marissa back into Harbour. With the help of Dr. Kim they get the board of trustees to hear the case will Marissa be permitted to return for her final semester?

It's winter break and Kaitlin Cooper has returned home from her Montecito boarding school.

Sandy and Matt's hospital project hits a roadblock. Kirsten and Julie run into troubles of their own with their matchmaking business. Marissa confesses her feelings to Johnny. Summer finds out out about Seth.

Kaitlin prepares herself to head back to school. Ryan has doubts about his relationship with Marissa after helping out Sadie. Kirsten and Julie make plans for a Valentine's Day party.