In the aftermath of the house fire, Kelly suffers second and third degree burns on right wrist, ear, and the whole right side of her neck and back. Allison's injuries are much more severe, but she maintains a positive attitude. While Kelly recovers at the beachfront apartment tended by her mother Jackie, Brandon is racked with guilt because of his feelings for Emily. Kelly does not react well when she learns that Emily is still in town. But after visiting Dylan at the halfway house and meeting Emily herself, Kelly learns that Brandon still loves her. Meanwhile, Steve feels guilty for the house fire and calls upon his father, Rush, to help out after Griffin abandons him. Griffin's father hires a professional attorney for Steve and Griffin where Rush advises both to plead guilty to one count of criminal trespassing in order to avoid jail time. Steve and Griffin follow Rush's advice and they both receive two years of probation and community service... and are also forbidden from operating or attending dance clubs or parties for two years. Steve is furious to learn of this provision, especially after he discovers the truth: Griffin had stole the keys from his father's real estate office to the house, lying to Steve about obtaining permission to use it for the rave. Afterwards, Steve confronts Griffin over him being indirectly responsible for the house fire as well as house key theft. When the smarmy Griffin shows no remorse over any of his actions, Steve orders Griffin to leave the fraternity by threatening him with physical violence, and Griffin reluctantly complies. Elsewhere, Ray's perpetual bad mood confuses Donna. He explains that his alcoholic mother always begins drinking around the holidays, because his equally drunkard father left her on Christmas day over 20 years ago after pushing her down a flight of stairs and causing her to have a miscarriage. Andrea and Jesse throw a party for Hannah's first Hanukkah. Jesse obtains work as an attorney for those who cannot afford representation. He is frustrated by the court treatment of a single Mexican immigrant father, whose kids are taken away when a babysitter neglects them, and his angry lesson about injustice to Steve leads Steve to do a good deed. At the end, Dylan comes home from rehab and is greeted by a letter from a stranger in Michigan who found Erica's note in the LAX ladies room, pleading for his help; the note reads: "Dylan... Kevin and my mother are taking me to Brazil. Help me! Erica".

While working off his community service at a Hollywood retirement home, Steve meets a former stage and screen actor named Saul Howard, a victim of Alzheimer's Disease, whose life story inspires Steve to make the most of his own. Meanwhile, Ray is offered the chance to perform on stage at the opening of the new Peach Pit After Dark nightclub. Also, Kelly's personal hostility towards Valerie escalates when she learns that Valerie spent Christmas in the Caribbean instead of visiting her family. When Kelly oversleeps one day and almost misses an exam, Valerie wakes up her just in time and Kelly half-heartedly thanks her. When Andrea and Jesse take Hannah to the hospital with a high fever, they come face to face with Peter, the guy Andrea flirted with at the laundromat, who happens to be an intern,