At the beach, Miley is happy for Lilly who now finally has a boyfriend. Soon, though, she starts feeling ignored when Lilly doesn't pay attention to her anymore. After talking with her, Lilly says she'll make it up to her and come over on Saturday to watch a movie with her.
Meanwhile, Rico is devastated that someone stole a pair of sunglasses from his shop. To make sure nothing like that ever happens again, Rico installs a new security system. Back at home, on Saturday night, Miley is ready for her movie night with Lilly. However, Lilly decided to invite her boyfriend, Lucas, at the last minute. But so Miley wouldn't feel alone, Lilly also invited Derek, Lucas' cousin, to watch the movie with them, too. Unfortunately for Miley, Derek becomes really scared from watching the movie and ruins Miley's night.
Jackson is getting fed up with Rico's new security system, since it's causing his job to be a lot more difficult. At school, Miley secretly catches Lucas kissing another girl. So she tells Lilly about it, but Lucas says Miley's lying. In the end, Lilly chooses to believe Lucas over Miley. In order to prove it to Lilly, Miley tried to get Oliver to record him hitting on her, but her plan failed. So she comes up with another idea: disguise herself as Hannah and try her plan again.
To apologize for what she said to Lilly earlier, Miley (as Hannah) takes Lilly (as Lola) to a fancy restaurant where Lucas and Oliver are at. And, without Lola noticing, Hannah starts flirting with Lucas to get him to notice her. Meanwhile, Jackson prepares to leave work for the night, but after already setting up the security system, he realizes he forgot his keys and goes back to get them. However, since he didn't unlock the system first, it froze him in ice completely.
Afterwards, Jackson tries to convince Rico that the security system is unnecessary and points out it was a nearby raccoon that had stole the sunglasses the other day, not a person. Back at the restaurant, Lilly catches Miley flirting with Lucas and becomes furious with her. However, Lucas comes over to them. Hannah, though, has to leave for a moment to deal with a fan of hers, so Lucas ends up telling the truth about him having two girlfriends to Lola, who he doesn't realize is actually Lilly. She now sees that Miley was really telling her the truth before and dumps him.
As the episode ends, Miley and Lilly promise to always trust each other if anything like this ever happens again, and a woman mistakingly thinks Oliver is Natalie Portman.