Caroline blames herself for a teen's death in a fiery nighttime boating accident where five drunken, underage boys accidentally set fire to their boat with fireworks, and one of them drowns after the rescue. Caroline's behavior on and off the job is affected. She fails a lifeguard re-check, pushes away Mitch, Cody, and even Stephanie, who offer her comfort, and falls under the influence of bad-girl Neely in drinking and hanging out with her biker friends.

While vacationing in Mexico, Mitch and his new girlfriend witness an attempted murder and are then hunted by the killers. Country and Western singer Jesse Lee Harris helps Logan and the Baywatch lifeguards raise money to save a ranch that conserves rare horse breeds.