With school out for the summer, Brandon is working to earn enough money to buy a 1965 Mustang convertible. To do so, he quits working at the Peach Pit and sets out to find a higher paying job. He is later hired as a cabana boy at the Beverly Hills Beach Club. Meanwhile, after taking a home pregnancy test, Kelly takes Brenda to the gynecologist where the truth as to whether or not she is pregnant is decided once and for all, but the results mean the end for Brenda and Dylan.

When Jack McKay is indicted on income tax evasion, Dylan goes out surfing in dangerous waters and is injured in the storm. The Walsh family take him to the hospital, but Jim is upset when he catches Brenda kissing Dylan. Meanwhile, Andrea, Donna, David and Brenda continue their acting class with Donna as Romeo and David as Juliet. Kelly falls for a handsome volleyball player who likes her but is scared to have sex.