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Austin secretly performs at a karaoke club in disguise, at the risk of being found out by Jimmy Starr. Ally mentors a girl with even more stage fright than what she had.
Austin and Ally prepare a budget for Life Skills class while at the same time wondering what married life would be like for them; awkwardness ensues when Dez is hired to direct a commercial and it turns out the star is his ex-girlfriend, Carrie.
A brother/sister act want to start their own music academy; but first, they need to get rid of the competition.
Ally tries to teach a new violin student, but she and Austin soon discover she has other talents. Meanwhile, Dez helps Trish film a video book report.
As the A & A Music Factory nears its grand opening, Austin and Ally must turn a group of young students into musicians in a week's time.
After Ally, Trish and Dez tell Austin that they won't be joining him for their senior year at high school, Austin decides to enroll in military school. But when the gang changes their mind, they must stop Austin before it's too late.