Everyone is back home in Newport, and Marissa is recovering. Julie points her finger at Ryan and forbids him from seeing Marissa, who does not appreciate the help. Sandy starts his new job, but finds himself surprised by the case work. Kirsten finds herself surprised by Sandy's new co-worker. Ryan enrolls at his new school, with conditions. Julie gets an intervention, and Jimmy gets a new roommate.

Back to school for the O.C. kids. No one really wants to be there, except for the gossips. Ryan doesn't feel like he fits in at his new school, and Luke doesn't make the situation any better. Sandy accepts a case at his new job, a case that will test his relationship with Kirsten and her father. Anna and Seth hatch a plan. Marissa chooses her man.

Sandy and Jimmy have plans to sign papers for the Lighthouse... but is Jimmy ready? Oliver makes his plans official to Ryan, but Ryan just cannot catch a break from anyone and finds himself in an all too familiar position. Summer has a "big" new boyfriend... for a little while. And Julie gets a job.

Social Chair Marissa tries to plan this year’s carnival but is having much difficulty due to a little pest named Taylor. Sandy is surprised to find Kirsten has been released from rehab but instead of informing him, she has been living with another woman named Charlotte who she met in rehab. Julie and Sandy meet with the Dean and Dr. Kim to discuss Ryan and Marissa’s future at Harbor High. Later Ryan and Marissa partake in a similar meeting. Elsewhere Jimmy meets a man and feels more than open to discuss his money problems with him.

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 is graduation day for Ryan, Seth, Summer, and Marissa at Harbor High School. After graduation they all went out to eat and celebrate their graduation. Ryan's mother gave him a new car as a graduation present. Marissa is going to spend a year on a boat with her father as her graduation gift. Seth finally got into RISD for second semester. Summer is still going to Brown University in the fall. Volchok is still mad at Marissa and Ryan so he decided to crash Ryan's car.