Changes abound with the start of the new school year: Bruno, with no means of funding his schooling after his father dies, is forced to drop out; Coco, Danny and Doris find out that even though her mother still lives in New York City, Julie is married and now living in Texas; new students Christopher Donlan, a dance major, and Holly Laird, a drama major, find difficulty in being accepted, most notably by their more seasoned competition, Leroy and Doris, and new vice-principal, Quentin Morloch, intends on ruling with an iron fist.

Mr. Shorofsky finds Bruno a job as a waiter at "Caruso's," a coffee house where he is free to play his music. After settling their feud with a fist fight, Leroy works with Christopher to improve Chris' dancing skills after Miss Grant decides to downgrade him to a different class.

When Morloch and the rest of the school find out the President plans to attend the school's fundraiser performance, certain elements of the show are reevaluated, including a monologue by Danny, while Leroy refuses to perform, and Ms. Sherwood is considered a security risk by the Secret Service.

This episode features the cast of "Fame," billed as "The Kids from Fame," along with the season three regular dancers in a special concert performance taped while on tour in Tel Aviv, Israel. The concert features performances by the cast, of songs from the television series. The concert took place in an indoor stadium in Tel Aviv before a live capacity audience. Along with the concert, the cast from "Fame" are shown visiting historical landmarks within the city during the 35th birthday celebration of the nation.

When Christopher is challenged to a boxing match by Keach Howard, the last man he defeated, and refuses to fight, Keach beats up Dwight in an effort to make Donlan change his mind. Meanwhile, Leroy becomes a mentor to Billy Hall, a fellow dancer in Miss Grant's class in whom Leroy sees a lot of himself.

Love is in the air as Bruno unwittingly falls for Lisa Connors, a student-teacher for Mr. Shorofsky, and Morloch expresses a romantic interest in Ms. Sherwood.

When Mr. Morloch announces that all students participating in any school production must have a minimum C average, Ms. Sherwood, despite Morloch's objections, assigns Leroy and Danny the responsibility of teacher, leaving Danny forced to make a tough decision when he suspects a friend has cheated.

Danny enlists Christopher and Michael to coach rival gangs in a "break dance" competition. Meanwhile, Doris has trouble ridding herself of "Snake," a gang member who has a crush on her, and Coco, inspired by Bruno's life out of school, contemplates leaving the School of the Arts to pursue her career.

When Dwight shows up to school with severe bruises on his body, Danny appoints himself as Dwight's bodyguard when he, along with the rest of the school, believe Dwight is a victim of bullying. Meanwhile, Miss Grant is not pleased when rumored drug trafficking brings an undercover cop to the School of the Arts, posing as a dance student.

Holly falls for Billy Christiansen, a new piano player who plays at "Caruso's." Upon getting ready to ask him out, she learns that he is a physically handicapped, wheelchair bound, paraplegic. Mr. Morloch tries to get Miss Grant to give his friend and former baseball star, "Lefty" Rogers, in pursuit of a career in recording jingles for television commercials, singing and dancing lessons.

This special features the cast of "Fame," billed as "The Kids from Fame," along with the season three regular dancers in their first concert in the U.S. which takes a look back at popular music in the year 1983. The concert took place on December 27, 1983 at the Santa Monica Civic Auditorium before a live capacity audience. Among other musical performances, this particular episode featured a medley of songs from motion pictures and a special tribute to Michael Jackson.

While working on a scene together, Holly and Christopher are prompted by their friends to try going out with each other. Danny falls for Marya, a student hoping to be admitted into the School of the Arts.

When Doris' ex-boyfriend, Sandy Gordon, who was expelled for his drinking problem, is allowed readmission into the School of the Arts, she's overjoyed until she learns that he was hiding his continuing battle with alcoholism from her.

When Doris tries to get her classmates to do a production of the reputedly haunted play, "The Gypsy Queen," she and Miss Grant are convinced that they have seen a ghost. While trying to obtain a better understanding of the occult, they discover that Mrs. Berg is a "spirit medium."

When Morloch learns about Leroy's previous track success, he tries to persuade him to go for a college track scholarship, much to Lydia's dismay. Meanwhile, while doing character research for a role as an elderly woman in her acting class, Doris finds an older man falling for her.

When Holly's mother moves in with her, she finds that her mom is getting in the way of things. Meanwhile, when Danny tries to hypnotize Leroy and Christopher, Mr. Morloch is inadvertently put under a post-hypnotic spell, leading Ms. Sherwood to have some fun with it.

When the kids discover that Danny has leukemia, Doris makes her biggest effort to convince him to listen to his doctor and fight the disease. Meanwhile, Lydia decides to show the kids how to make a non-dancer look good in a dance number.

A former night club performer, and close friend to Leroy's uncle, Eddie Macon, is discovered by Ms. Sherwood hiding out in a closet in her classroom. Now homeless and alcohol dependent, Leroy and Mr. Reardon attempt to help him while casting him in a school production. Meanwhile, Holly helps Doris with make-up in an attempt to impress a boy she's interested in.

Blind substitute teacher Jim Hamilton returns to the School of the Arts and expresses a romantic interest in Lydia.

Caruso's landlord threatens to turn the coffee house into a parking lot unless Bruno gets his young opera singer friend accepted into the School of the Arts. Meanwhile, Mr Shorofsky has a secret meeting with Mrs Berg.

A substitute teacher filling in for Ms. Sherwood tries to keep her past as a singer a secret, but Dwight remembers her from his childhood and is determined to find out why she stopped singing, enlisting Mr. Shorofsky's help when he learns the truth.

While showing off for a girl in class, Christopher back flips and hits his head, resulting in a loss of his hearing, and a forced transfer to a school for deaf students. Meanwhile, Miss Grant and Mr. Shorofsky try mixing singers and dancers in the same production.

Mr. Shorofsky is disappointed with Doris rejecting her heritage when she turns down the opportunity to perform at a Holocaust Survivors benefit. Meanwhile, Lydia is hired to teach dance to a basketball team.

With his father unemployed, Christopher is forced to take on the role of a parent to his young siblings, which ends up effecting his performance in school. Meanwhile, when the students fall behind in their efforts in class, Mr. Morloch holds a class on a Saturday.

Doris and Danny console each other over sour flings; Love holds surprise for both Sherwood and Leroy; Holly sets her sights on an older man.

Christopher falls hard for a visiting Czech student; Leroy tries to avoid a new admirer; Doris runs for student-body president.

Staff and students fight back after Sherwood is accidentally injured by kids dancing in the hallway, and the board of education responds by issuing a directive placing a ban on all singing and dancing in non-designated areas.

Leroy's long-lost father shows up at the School of the Arts, and receives a chilly reception from his son. Meanwhile, Danny deals with father issues of his own as he tries to convince his father that his aspirations to become a comedian aren’t futile.

Comprised of excerpts from the second U.S. concert by "The Kids from Fame" paying tribute to the history of Rock 'N' Roll.

A blizzard traps the staff and students in the school, provoking various problems, including a broken furnace and a prowler.

An opening-night hex threatens Cassidy's directorial debut when Morloch inadvertently breaks a show-business dictum.

Trevor Kane, a School of the Arts Alumnus and acting has-been, returns to the school to make an appearance in a play that Doris is directing in the hopes of revitalizing his career.

A TV news feature on the school brings Nicole to the attention of a prisoner, and her to his talent as a songwriter.

Christopher writes a less-than-rave review of Cleo's debut as a lead dancer; Nicole and Jesse look for romance in the personal ads.

Lydia has a dancing showdown with Holly's mother, who thinks Lydia and Holly lack the drive to succeed in show business.

After it comes to light that Jesse is an illegal alien, the staff and students at the School of the Arts band together and fight to keep him from being deported.

Sherwood fights student apathy when Morloch institutes an ROTC program at the school and cancels a show to benefit the nuclear-freeze movement.

This episode contains excerpts from the second half of the concert.

Drama teacher Trevor Kane discovers his ex-wife is the object of Chris' affections; Holly and Nicole try to help Cleo catch Leroy's attention.

Parents' Week causes problems for Nicole, who has a difficult time dealing with the pressure her parents are putting on her; Meanwhile, Danny's parents decide to get divorced.

Danny falls for Nicole while trying to smooth things between her and Jesse; Morloch gets a second chance with his college sweetheart.

Chris gets a break while performing with Danny then deserts his partner and finds competition from Leroy; Nicole and Holly room together.

A famous, retired director directs Coco in her first performance since returning to the School of the Arts to get a diploma.

Sherwood temporarily becomes vice-principal while Morloch attends a conference; Doris has a dream date; and Leroy, three months behind on his rent, shoots for $10,000 on a game show.

After being mugged, Doris puts on a brave front around her family or friends, but secretly struggles with nightmares and flashbacks; Dwight tries to control his emotions for Holly.

Holly's despair over her parents' marriage causes her to become anorexic; Doris decides on a Hawaiian theme for the school's Prom.

Nicole's biological mother returns and tries to involve herself in her daughter's life; voiceless Morloch enlists Chris' aid to make a speech.

Danny faces the problem of organizing his fellow students into a winning team after accepting a softball challenge issued by an old rival.

As Summer vacation approaches, Jesse, Cleo and Nicole reminisce after Cleo reveals that she will not be returning to the School of the Arts in the fall.

New student, Dusty joins the school and feels particularly out of place. Leroy becomes Miss Grant's dance assistant. Chris and Danny prepare to play female roles in drama class.

Leroy's eight year old niece causes trouble when she imposes on her uncle and the faculty at the School of the Arts. Danny has trouble getting actors' equity when he finds out another Danny Amatullo is registered. Christopher struggles with the role of Hamlet.

Danny meets his hero Bronco Bob from the old western movies. When he finds that Bronco is down on his luck and on the verge of losing his prized horse Prince the Miracle Horse to repossession by a spiteful rival, Danny may be the one to give Bronco the courage to prevail and win his horse back.

Jesse wins a song-writing contest but struggles with remaining true to himself when a couple of big-shots try to re-write his work. Mr. Shorofsky has to decide whether to let a mediocre violinist into the School of the Arts when the hopeful's father offers the school much needed money.

Christopher falls for a new student, Julie Chandler, who he discovers to be a coke addict. Her persistent use does not only hurts their relationship but may cause Julie an inevitable-and early-demise. After his parents' separation, Danny feels uneasy when his mother, Gina Amatullo (Played by Betty Karlen), starts dating Lou Mackie.

When violence erupts among neighborhood gang rivals, The Ravens and the Skulls, the Ravens' leader asks Jesse to join their gang. Although unwilling initially, when The Skulls' leader kills Jesse's good friend, he joins the gang to avenge the murder of his friend.

Prince Freddy of Vatonia visits New York City to make a speech for a United Nations' event. When the prince's life is threatened, Christopher, the prince's perfect look-a-like, is chosen to switch places with the prince. Christopher is willing to go along with the charade until he is attacked by gunmen.

When Danny finds out that a notable agent regularly attends a local restaurant, him and the gang set out to audition for him right it the restaurant. After a spirited rendition of Prince's "Baby, I'm a Star," the agent sees Danny fit for work as an agent despite Danny's life-long aspirations to be an actor. This puts Danny's acting duties in the school's latest production on the back burner.

With Mr. Morloch's strict enforcement of school board regulations, he is seen as a "Scrooge." On Christmas eve, while working on the school's budget, Mr. Morloch falls asleep in his office where he dreams he is visited by the Ghost of Christmas Past, the Ghost of Christmas Present and the Ghost of Christmas Yet To Come who come to show him the importance of Christmas cheer.

Mr. Morloch has left the school to coach a semi-pro ball team in Buffalo. Holly is leaving to star in a soap opera being shot in Hollywood. Nicole decides to audition for several roles and when she gets a small role in a Broadway play, new principal Mr. Dyrenforth, tells her she has to choose school or the play. An old neighbor tries to use his connection with Leroy to sway his audition.

A series of unlucky events has Mr. Dyrenforth convinced that he is jinxed. When Nicole refuses to have sex with Jesse, the two break-up deciding to date other people for a school dance. Danny and Reggie go to the dance together and find that they share a liking toward each other.

When the school decides to work on a production of "Huck Finn," Bobby expresses uneasiness with the portrayal of his character Jim. Outraged by the content and lack of disapproval from his fellow Black students and faculty members, he leads a protest to have the play banned from the school.

After his niece, Tina, burns down his apartment, Leroy gets Tina to stay with Mrs. Berg while he stays with Miss Grant. Carl, Miss Grant's old boyfriend returns and as they get reacquainted, Tina does all she can to keep them apart in hopes that Leroy and Miss Grant will get married and adopt her.

After a rehearsal for the school's production of "Sherlock Holmes," a pipe in the dressing room bursts. The school is in need of serious renovation only, the school cannot fund the repair work and plans are made to sell the property. Danny and Christopher try to prove that the janitor, Ralph, is accepting bribe money from a contracting firm seeking to use the property to build parking space.

Competition between Danny and Jesse for the lead in "Dr. Jekyll and Mr. Hyde" heats up when it is determined that who ever plays the role has to pass the biology midterm. Jesse is caught with the answers to the test after he passes and gets the lead and Danny is determined to make him suffer. The yearbook money has gone missing.

Lamar, Leroy's brother and Tina's father returns for Tina under the pretense of establishing a life for Tina when he discovers that she has inherited her deceased nanny's $22,000 estate. Leroy is suspicious of his brother's intentions. Dwight is directing a play about the Dewey Decimal System and builds a character around Holly which drives the cast crazy.

When Danny and Chris gain local success with their comedy act, Comedian Sandy Webb, who is running a comedy workshop at the School of the Arts, steals their act and prompts the break up of the pair and Danny's dismissal of comedy. Reggie starts joking around when she realizes that people are taking her portrayal of Lady Macbeth as a joke.

Christopher develops severe stage fright after he makes and early entrance on stage. Jesse attempts the tapping record and Kate asserts that she wants to transfer out of Miss Grant's dance class into Miss Turner's class.

The School of the Arts is plagued by a series of vandalism attacks by unknown vandals. Jesse is upset when he discovers that Nicole has a secret admirer who keeps sending her flowers. With the vandalism and unwanted flowers, Nicole seeks solace in Miss Grant's karate class.

As the deejay for W.S.O.A., the school's radio station, Jesse receives calls from Roberta, a suicidal sixteen year-old. After being advised by a psychologist for the school board to continue talking with her, he struggles to keep her alive. Mr. Dyrenforth calls on Dwight to help him enforce a new dress code.

In an effort to establish contacts, Chris gets a job waiting for Laura, an agent, who mistakenly asks him to read for her. Impressed, she sets up an audition for him but with Chris and Laura getting close, Chris' relationship with Kate is put in jeopardy. The dancers from Miss Grant's class are upset with Leroy when he gets them a job with a summer stock company and turns down the offer when the producer revokes their pay.

Mr. William Quigley, an eccentric substitute teacher, fills in for Miss Sherwood who falls ill with a cold and leads a protest against the mandatory I.Q. tests.

Leroy severely injures his knee and is forced to go through an operation and rehabilitation. He recovers but when he returns to the school, he fears injuring himself again instead taking his anger out on Henry Lee, a returning applicant. Miss Grant is determined to push Leroy back into dancing before he gives it up forever. Reggie has a crush on Max.

Jesse is hospitalized as he suffers a concussion. He's unconscious and thus unable to testify to what happened. Mr. Dyrenforth, Miss Sherwoord, and Christopher try to get to the bottom of what happened but with conflicting recollections from Mr. Torrence, Nicole, Jesse - through Mrs. Berg who claims she's a medium, and Christopher, they remain unsure about the true events.