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Goldstein, Gomez, Hayward, and Reese all return for an "alumni" exhibition game, amid all the troubles the four have encountered in "real life" since graduating. Hayward is in college and receives a summer job offer at a law firm, but struggles with breaking free from his troubled past. Goldstein, after a year in the Marines, now believes he has the confidence to ask out a girl he admired while at Carver. Gomez is struggling to make ends meet as a car mechanic with a pregnant wife. And, finally, Reese is driving a cab and spends the day with a famous singer, who agrees to help him pursue his dream of becoming a singer.
Mr. Mackey, Carver's history teacher, is frustrated over the casual attitude of Carver's black students, feeling they have no idea what his generation went through. He stops caring and shows signs of teacher burnout by refusing to maintain order and discipline in his class and handing out undeserved grades. Rutherford, who admires him, is especially distraught by his attitude.
A woman is mugged on the street at night by three young black men, and the description she gives the police matches Coolidge, Franklin, and Thorpe, who happen to be out on the town that night. During the apprehension, Thorpe observes one of the cops being excessively brutal to Coolidge and is shot by the cop when he tries to get his badge number. This sets off a storm of protests at the school until the matter is resolved
A female teacher with a past history of mental illness and nervous breakdowns is tormented by a psychotic student.
Salami and Vitaglia take on a part-time job reposessing cars, but the ungodly work hours and the harassments from the car owners affect their performances in school, on the basketball court, and their relationship as cousins.
Coach Reeves is called for jury duty and lies to get out of it. He later learns a lesson about practicing what he preaches when he has to punish Falahey for faking an injury to get out of practice so he can see his girlfriend. Things get hairier for Falahey when the girl discovers she's pregnant.
Coolidge starts having problems stemming from his abnormal height and size, such as normal clothes not fitting and "how's the weather up there" jokes. He gets self-conscious and defensive until Coach Reeves, who has dealt with the same problems, takes him under his wing and tries to let him know he's not alone, with help from NBA Hall-of-Famer Bill Russell.
While out on a joyride in a stolen car, Stone moves an unconscious woman from a car blocking the road. Shortly afterward, the car explodes, and now Stone is a hero for saving the woman's life. He milks the attention for all it's worth until the truth is brought to light
The team tries to capitalize on their shower singing by signing on with a record company, and the results aren't what they bargain for. Meanwhile, Reeves gets an offer to do TV commercials for a tire shop.
After celebrating his 18th birthday, Salami breaks the jaw of an opposing player during a brawl at Carver's next game. The player's angry parents sue, and Salami must plead his case in court with Reeves' help.
Reeves and the team help conduct a basketball clinic at a local Catholic school, and Reeves takes a dating interest in one of the female basketball coaches, unaware that she's a nun. Meanwhile, Stone tries to help the team make Christmas cash by reselling reject Christmas trees.
Reeves is asked to use his former-NBA-player connections to raise funds for a mobile care unit to treat patients with high blood pressure. As punishment for wrecking the driver's ed car, he makes the team do the collecting. However, they decide to publicize that Reeves is dead to entice celebrities to attend the benefit and contribute.
Coolidge begins to think his basketball ability is all he needs to succeed in life and his schoolwork suffers. After warnings from Reeves and Mrs. Buchanan, he takes the low road and thinks he can make the Harlem Globetrotters. The Globetrotters, however, teach him a valuable lesson.
After a heated argument with his dying father, Reeves decides to stay in Queens awhile to mend the relationship, even considering a leave of absence from Carver at one point. Once all is OK, he returns to Carver for the new school year, and basketball tryouts produce the following new guys: Wardell Stone, Jesse Mitchell, Teddy Rutherford, Paddy Falahey, and Eddie Franklin.
The third season begins with Coach Reeves visiting Bayside Queens , New York, for his 20th high school reunion and reuniting with old friends, including a high school teammate, an old girlfriend, and his father, whose health is failing. Prior to his leaving, he gets a surprise: Jim Willis has left and Sybil Buchanan is now Carver High School principal!
