Kelso takes Pam Macey to the prom to make Jackie jealous, so Jackie goes with Hyde instead. Eric rents a hotel room intending to have sex with Donna. Midge wants to start her own business, but Bob opposes the idea.

When the gang climbs up the water tower to paint a pot leaf on the side, Kelso falls over the side and hurts himself. Meanwhile, Eric is unable to pay attention to anything after walking in on his parents. When Laurie finds out what Eric went through, she spills the beans to their parents, and eventually gets "the birds and the bees" talk from them.