It's the year end dance at Degrassi and Jimmy wants to make the night perfect for Hazel, but things just get worse and worse. Sean comes clean about the lap top to Mr. Simpson, and Mr. Simpson finds it difficult to forgive him. Joey asks Caitlin to move in with him, and she is excited, but when an amazing opportunity at work arrives, she has to decide if she will take it, or move in with Joey.moreless
Sean's brother, Tracker, gets a job in Alberta, but Sean doesn't want to move with him. Sean discovers he can legally live on his own with student welfare, but that plan is in jeopardy when his place becomes party central. J.T. still has feelings for Manny, but is afraid of asking her to the dance.moreless
Paige and Spinner decide to skip school, and they bring Ashley along in the hopes of cheering her up, but she just brings the mood down. When Emma accidentally finds Mr. Simpson's Will, she freaks out, fearing that his chemo has failed.
Spinner decides to help Marco ask Dylan out, and prepare for their first date. The date, however, does not go well. J.T. is excited for his commercial that is coming out, and throws a viewing party, but the reaction is not what he thought it would be.
Craig's band and Ashley's band both sign up for the Battle of the Bands, and it is more than just a competition for the two of them. When Joey throws out his back, Caitlin is in charge of the house, and it is not as easy as she thought.
Now that Jimmy and Hazel are together, and Spinner and Paige are together, Terri feels a bit left out. She decides to give Rick another chance, but after an argument, things take a turn for the worst, and Terri winds up in the hospital. Sean is annoyed that Ellie is constantly hanging around with Marco, and they can never be alone.moreless
Sean, Ellie, Hazel, Jimmy and Toby are stuck in Mr. Raditch's Saturday detention. Despite being in different cliques, the students come to realize that they're all in the same boat together and start to get along with one another.
At first, Craig and Manny seem excited to be starting a family together, but soon Manny feels like she cannot handle it and starts to consider other options. J.T. tells Liberty to get over him once and for all, and so she starts liking Sean.
The flu is going around Degrassi, and at first that is all Manny thinks she has, but there are signs that it is much worse than that. In order to score tickets to a concert, Toby agrees to hack into the system and change Jimmy's grade.
Chris and Emma start to date, but he starts getting annoyed when Emma is on the warpath to get Sean in trouble for stealing things, because he broke her heart. Paige has a crush on the driving instructor, which causes Spinner to be jealous.
Sidney reveals she knows how Caitlin feels about Joey, which makes things even more awkward. After the kiss, Joey isn't sure how he feels about Sidney anymore. Craig tries to play both Manny and Ashley, and winds it up disastrous.
It's almost the holidays and Caitlin is planning on spending them alone. She is also spending a lot of time over at Joey's, which makes his girlfriend, Sidney, a little jealous. Manny asks Craig to break up with Ashley, but he has a difficult time doing it.
Terri and Rick seem to be the perfect couple, but not everyone thinks Rick is all that great. Soon, Ricky becomes controlling and overbearing, and when he starts abusing Terri, she tries to hide it. Spinner and J.T. start a prank war.
Manny tries to help Emma get Chris Sharpe by taking her to a rave where Chris DJs. At the rave Manny hooks up with Craig again. Jimmy invites Spinner and Marco to a sleepover study session, and Spinner is nervous as he thinks Marco has a crush on him.
After her dad leaves to go on a peace keeping mission, Ellie's mom starts to drink. As things get more and more hectic, Ellie discovers a dangerous new outlet for her pain; cutting. Terri has a secret admirer, and when Toby starts flirting with her, she assumes it is him.
Craig is having a hard time telling Ashley that he loves her, which is making her want a break. After writing a song expressing his feelings, Ashley agrees to sleep with him, until he goes and tells Spinner about it. Manny starts to doubt her own relationship, and finds herself fawning over Craig again. Her and Craig wind up alone in his room, where Manny comforts him. Mr. Simpson is starting to feel depressed about the cancer, so in order to cheer him up, Joey takes him out bowling, where they meet up with an old friend.moreless
Sean is feeling lonely again, as Emma is busy and his brother is not spending time with him. He is getting frustrated, and at first him and Jay, the school tough guy, seem to be at odds, but after a fight, they slowly start bonding, and Sean is back to his old ways. J.T. has become friends with the popular group, and Toby is feeling left out, and decides to get back at J.T.moreless
Spinner is totally weirded out, now that he knows Marco is gay, and he starts to shun him, and makes comments to others, hinting that he might be gay. On the way to Dylan's hockey game, Marco gets ganged up on by gay bashers. Mr. Simpson is in a great mood despite the possibility of him having cancer.moreless
Ellie refuses to pretend to be Marco's girlfriend, but he still can't admit that he's gay to his friends. Things gets more complicated when Marco has his eye on Paige's older brother, Dylan, while Spinner is determined to hook Marco up with Hazel. Mr. Simpson gets sick, and spends the weekend at Joey's. When he almost passes out, Craig gets concerned that it is more than just a cold.
Tired of being known as cute, Manny completely changes the way she dresses. Soon every guy in school, including J.T., have their eyes on her. When Manny starts enjoying the attention a bit too much, and rudely shoots down J.T., her and Emma have a falling out. When Joey finds out Craig has a band, he is estatic and and allows them to rehears in the garage. He soon gets too involved for Craig's liking.moreless
Emma finds her real father, but he is a patient at a clinic, not a doctor. She is really upset with her mom. Shane shows up at the house when Spike is alone, and refuses to let her leave, or call someone. In order to get Jimmy's locker for Paige, Spinner has to admit that he is spineless in front of the whole class, which upsets Paige.moreless
The pending birth of Spike and Mr. Simpson's baby inspires Emma to search for her birth father. Spinner tries to get Paige the perfect locker for their four month anniversary.