Mitch Buchannon has just been promoted to lieutenant. Mitch and his ex-wife Gayle have an argument about what's best for their son Hobie. Eddie Kramer is the top rookie in the rookie class of '89, and Shauni McClain is one of the last ones to qualify. Shauni starts off as a terrible lifeguard, but the experienced Jill Riley teaches her how to become a good lifeguard.

Instead of attending summer school, Hobie decides to go power skiing with two friends, whose recklessness leads to a tragic accident. Eddie's lack of financial resources is revealed when Craig finds him sleeping in one of the lifeguard towers.

An underwater photographer is attacked and more than a few people believe a sea monster is responsible. With the hysteria over the 'sea monster', Mitch and his fellow lifeguards are determined to get to the bottom of the mystery. Shauni's work as a lifeguard leads to conflict with a bunch of locals and her father but her father has a change of heart after he learns more about what she does.

Harvey is feeding off the local panic, making a small fortune selling ""Creature in the bay"" T-shirts. Just when things start to calm down, the situation escalates when a fishing boat catches something huge in its net, and is pulled underwater by the mysterious entity below the surface.

Eddie teaches an overweight girl who has loved him from afar the importance of self-esteem, while Mitch and Hobie adopt a dog that is the only witness to the owner's kidnapping.

Ex-con and martial arts master Mason Sato terrorizes Mitch, Kaye, and Hobie.

The Baywatch crew crack a seaborne drug ring, and Ben finds love with an aging movie star.

A beautiful Olympic hopeful disappears after a savage shark attack and Eddie's brother Bobby arrives for a weekend visit.

Mitch receives news of his uncle's death. He recruits Hobie, Eddie and Shauni to trek to northern California's rugged gold country where he learns his uncle may have found the golden boot. Eddie and Shauni are having problems in their relationship when Eddie is accepted into a year-long lifeguard exchange program in Australia.

Drew shoots at the raft. Shauni is taken hostage, and pushed off the cliff. After Eddie and Mitch save her, she finds out that she's not pregnant. Eddie proposes to her. Mitch climbs down with the help of a rope and finds the golden boot; Jed arrives at the trailer. Eddie marries Shauni and they move to Australia.

Hobie weaves a web of lies to impress a girl; Summer is humiliated when she mistakes an offhand invitation from Jimmy Slade for a date.

The love strings between Courtney, Slade and Summer are pulled tight; C.J. accepts a position at Malibu Beach High; Garner tires of work.