Welcome to Laguna Beach and the life of eight high school friends who were born and raised in this beautiful seaside town. As the senior girls prepare for one of their infamous hotel parties, Stephen is torn by his attraction to two girls, Kristin and LC. After Kristin confronts him about his night with LC, sparks fly as they all attend the Black & White party.

Stephen thinks he has to teach Kirstin how to surf, something she doesn't really like. Kirstin plans to cook with Jessica for Dieter and Stephen - a difficult project, when nobody knows how to cook! Stephen is getting jealous and he wants to talk with her at the bonfire - what will she say?

When LC, Stephen and Trey check out a designer fashion show in LA, LC watches Stephen's attention turn from fashion to fashion models. Meanwhile in Laguna, Kristin, Alex, and Sam, a junior hottie, go look at expensive cars, but Kristin's day of joyriding comes to a surprisingly abrupt halt, causing a nightmare no one expected.