It is graduation day for Ryan, Seth, Summer, and Marissa at Harbor High School. After graduation they all went out to eat and celebrate their graduation. Ryan's mother gave him a new car as a graduation present. Marissa is going to spend a year on a boat with her father as her graduation gift. Seth finally got into RISD for second semester. Summer is still going to Brown University in the fall. Volchok is still mad at Marissa and Ryan so he decided to crash Ryan's car.
Harbor School's Senior Prom brings out the best and the worst in everyone. Taylor hits a high at prom, while Summer falls flat with her surprising prom date. Seth and Anna come up with a prom plan to win Summer back. Meanwhile, Marissa convinces Volchok to go to the prom and Ryan brings an unexpected old flame. When one of the girls is elected prom queen, it truly becomes a night to remember. Later, when Taylor's prom funds are missing, Ryan returns to his old ways and prom night turns brutal.
Graduation is just weeks away and Ryan, Seth, Summer and Marissa leave Newport to attend their respective pre-frosh orientations at UC Berkeley and Brown. While dropping the boys off at the airport, Kirsten is surprised to see Theresa and her all-too-familiar-looking baby boy. While visiting Brown, Seth runs into Anna on the quad and they instantly connect. Could this be the end of Summer and Seth? Meanwhile, Kirsten and Sandy attend a hospital benefit where Kirsten vents her frustrations and falls back into an old habit.
Ryan decides to go and invite his mother to his graduation party. Taylor and Summer work together to try and find out what Seth is hiding, but Summer ends up getting hurt. Marissa realises she is in bad company after she finds out how low Volchok's friends can go. Sandy is able to fix his work problems with Matt but while doing so he hurts Kirsten.
Julie and Dr. Roberts announce their engagement and the Cooper ladies move in with Summer and her dad. Meanwhile, Marissa drifts away from the group and Summer when she seeks solace in the bad company of Volchok and his crew. Ryan tries to move on with Sadie, but Seth's concerns for Marissa get in the way. At the Newport Group, Sandy's woes with Matt continue and Kirsten surprises Seth with a night out.
When Ryan and Sadie go on a road trip to search for one of Johnny's relatives they end up in Ryan's old neighborhood in Chino, which brings the two closer together. While the two are away Marissa is implicated in Johnny's death and Seth and Summer learn the truth about Julie and Dr. Roberts new secret.
When the gang heads to The Bait Shop to see The Subways, Taylor's horsing around causes a major rift between Seth and Summer. Marissa, determined to end the potentially explosive rift between Ryan and Volchok, does whatever it takes to watch out for Ryan. Meanwhile, Matt, Sandy's Newport Group partner, goes above and beyond the call of duty when he learns he has to cut Newport Group staff.
Marissa struggles with attending a public high school, and her new friends make Ryan jealous; Charlotte's ruse is up when she learns that Kirsten did not inherit any money from Caleb; Julie's mansion is repossessed, leaving her with nothing; Taylor's power play dethrones Summer as commitee chairman, who then learns an interesting secret about her and Dean Hess.
Social Chair Marissa tries to plan this year’s carnival but is having much difficulty due to a little pest named Taylor. Sandy is surprised to find Kirsten has been released from rehab but instead of informing him, she has been living with another woman named Charlotte who she met in rehab. Julie and Sandy meet with the Dean and Dr. Kim to discuss Ryan and Marissa’s future at Harbor High. Later Ryan and Marissa partake in a similar meeting. Elsewhere Jimmy meets a man and feels more than open to discuss his money problems with him.
In the season three opener, we start off with senior year starting in a few days. It has been a couple of months since the shooting. Trey has been in a coma all this time leaving the D.A. impatiently waiting for his side of the story. Feeling the pressure from the community the D.A. continues to put pressure on Ryan, Marisa, Seth, Summer and others for more information. Meanwhile Julie is steaming mad because Caleb’s accountant won’t give up the goods on Caleb’s will and Kirsten is still in rehab.