Caroline is torn when she must make a choice between JD and her dream of being an actress. Jordan meets her birth mother.

Mitch is reunited with his old Baywatch lifeguard friend, Craig Pomeroy, now a full-time lawyer in town trying to honor a Native American's dying wish to die peacefully on sacred Indian grounds, now the public beach. Meanwhile, Neely Capshaw returns to Baywatch after being incapacitated for months in a skiing accident, with a hidden addiction to painkillers. When Donna figures out Neely's secret, she unsuccessfully tries to persuade Neely to get help because Donna's sister, too, had an addiction to painkillers. Also, Hobie uses a fake ID to get into a nightclub with his friends and suddenly wins a $1,200 prize dance contest with Lani moonlighting as the dancer "Kyra."