Liam and Dixon plot to tell Naomi the truth about her sister at the horse races; Silver and Teddy bond over their shared loss of a loved one; Adrianna swears off drugs after visiting Navid in the hospital; and Annie sneaks out with Jasper despite being grounded.

Annie questions Jasper about his involvement with drug dealing, but he evades the question by revealing his suspicions about the hit-and-run accident. Meanwhile, Navid asks Adrianna for help proving Jasper pushed him down the stairs; Teddy shares his true feelings for Silver, which makes Dixon jealous; and Naomi and Silver drop by the winter dance before going to the Caribbean for Christmas break.

Naomi (AnnaLynne McCord) returns from her vacation in St. Bart's excited to spend time with Liam (Matt Lanter), which leads to the two getting up close and personal in his newly built boat. Adrianna (Jessica Lowndes) and Gia (Rumer Willis) bond during an AA meeting and establish a support system for each other which leads to the two sharing a kiss at the Beach Club. Navid (Michael Steger) and Dixon (Tristan Wilds) devise a plan to eliminate Jasper (Zach Sherman) from Annie's (Shenae Grimes) life, but never anticipate the outcome of a school drug search. Dixon attempts to rekindle his relationship with Silver (Jessica Stroup), while Silver hides her true feelings for Teddy (Trevor Donovan). Harry (Rob Estes) and Debbie (Lori Loughlin) run into Kelly (Jennie Garth) while attending a school function and Debbie confronts Kelly about having a crush on Harry. Stuart Gillard directed the episode written by Mark Driscoll and Padma L. Atluri.

Naomi (AnnaLynne McCord) enlists Ivy's (Gillian Zinser) help in reducing the awkwardness with Liam (Matt Lanter) and the three decide to go on a hike, something Naomi has never done. Naomi discovers Ivy's alterior motives and confronts her by pushing her face in the sand. Naomi, Silver (Jessica Stroup) and Adrianna (Jessica Lowndes) go shopping in the Palisades and run into Annie (Shenae Grimes) and Jasper (Zach Sherman). Jasper blackmails Annie with photographic proof of her hit-and-run, but she gives Jasper an ultimatum that puts her mind at ease. Adrianna and Gia's (Rumer Willis) friendship continues to develop when the two throw a pity party for themselves. Silver (Jessica Stroup) and Teddy (Trevor Donovan) toy with the idea of trying to make a relationship work. Ryan (Ryan Eggold) meets free-spirited Laurel (guest star Kelly Lynch, "The L Word") at a bar, but soon they move to her car so they can get to know each other even better. A surprise visitor shows up on the Wilson's doorstep. Rob Estes, Lori Loughlin, Michael Steger and Tristan Wilds also star. Fred Gerber directed the episode written by Rebecca Sinclair and Jennie Snyder Urman.

Dixon's biological mother, Dana (April Parker Jones), visits, hoping to reconnect with her son, and Debbie confides her fears about Dana to her yoga instructor (Greg Vaughan). Meanwhile, Silver finds herself unable to trust Teddy after they go on their first date; Navid tries to get over Adrianna by dating a new girl; Gia confesses her feelings to Adrianna; and Annie notices that Jasper has been following her.

Rob Estes (Harry)

Naomi makes a dangerous claim about the new faculty adviser (Hal Ozban) for the Blaze, with whom she does not get along; Dixon bonds with his birth mother (April Parker Jones) as Debbie grows closer to her yoga instructor, Kai (Greg Vaughan), but he takes things too far; and Adrianna goes on an official date with Gia, while Teddy deliberately tries to make Silver jealous.