During the weeks that have passed since the court hearing, Sammy and Christian become good friends and have decided to forget about girls, becoming inseparable, but Christian begins to ignore Sammy so that he can spend more time with Tara instead. Sammy becomes jealous and starts to think he might have feelings for Christian. Ethan and Kat's father, Sebastian Karamakov, arrives to direct the Academy's end of year production, The Nutcracker, putting pressure on all the students to audition and compete for roles.

The Academy's performance of The Nutcracker is quickly approaching, and Tara continues to practice for her dance solo in Act 2. However, Director Karamakov warns her that if she does not improve her performance, he will put Abigail in Tara's place. Tara's confidence increases when she discovers that her costume has been worn by many famous dancers in the past, but Abigail hides it to try and discourage her further. Kat leaves the Academy with Myles to road-trip around Australia, and Sammy tries to convince his father to continue letting him attend the Academy.