WELCOME TO THE WINTER WONDERLAND – Navid (Michael Steger) is convinced Jasper (guest star Zach Sherman) pushed him down the stairs and turns to Adrianna (Jessica Lowndes) to help reveal the information. Annie (Shenae Grimes) is confronted by her friends about Jasper's drug dealing but when she confronts him about the news he reveals his suspicions about her involvement in the hit and run. Naomi (AnnaLynne McCord) and Silver (Jessica Stroup) decide to spend Christmas break in St. Barts but first make an appearance at the beach club for the winter dance.
Teddy (Trevor Donovan) reveals his feelings for Silver, causing Dixon (Tristan Wilds) to be jealous, while Naomi and Liam (Matt Lanter) attempt to forgive each other for what happened with Jen (Sara Foster, who does not appear in the episode). Debbie (Lori Loughlin) attempts to spend some quality time with Dixon by taking him to the arcade.
At school, Annie sees a group of ballerinas who announce the upcoming Winter Wonderland dance. She tells Jasper that she used to be into dances and sees he doesn't want to go. Naomi asks Annie to talk to her in the bathroom. She admits she made a huge mistake when she accused her of sleeping with Liam. She says she knows Jen was the one who was with Liam. Annie tells her she put her through hell. In the journalism club, Navid tells Teddy and Dixon that he can't go to the police with only his suspicions that he saw Jasper push him down the stairs. He figures he should prove that Jasper is selling drugs. He introduces the boys to Laila and explains she is a school newspaper reporter. She says her story has hit a dead end. Navid says after he gets proof, Jasper won't know what hit him.
Silver asks Teddy if he would sponsor her for her cancer run. She explains her T-Shirt shows that she is a Ford Warrior. Teddy asks her if she would like to go with her to the Winter dance. Silver says she knows he likes to show up with several girls. Liam tells Ivy he wants to talk to Naomi since he hasn't talked to her since the horse race. He tells her he just wanted to check in and make sure she is okay. Naomi tells him that he could have put a stop to the lies a long time ago. Liam explains he didn't think she would believe him. Naomi gets upset then leaves. In the bathroom, Naomi asks Silver when she is going to stop liking Liam. Silver says she saw Liam kissing Ivy and should find someone else. After Naomi and Silver leave, Ivy walks out of a stall. Teddy suggests to Liam he should ask Ivy out. Teddy admits to Dixon he asked Silver out to the dance and was turned down. Teddy asks Navid what he should do. Navid suggests he show her his heart. Adrianna joins Silver and Naomi during lunch and says she heard about Jen. The girls decline to ask her to join them. Liam asks Ivy if she would like to go to the dance with him and she says she would like to. Navid follows Jasper to his car, but he notices him. Navid tells Jasper he will be there when he messes up. Jasper says he thinks he is suffering from delusions after his head injury. Later, Navid asks Adrianna for help. Navid informs Adrianna he thinks Jasper pushed him down the stairs, but he can't prove it. He says he needs someone to come forward and state that Jasper is a drug dealer. Adrianna says she can't help since she is on probation. Navid says he will figure something else out.
Debbie takes Dixon out to play mini-golf. Debbie tells him that they used to take him out often, but he reminds her he was only ten. Debbie asks him how long it will take for him to forgive her. Liam tells Annie that he owes her an apology. Jasper asks them what is going on. After Liam leaves, Jasper says he doesn't think an apology will make things better. Annie says Jen is the only reason why she is not friends with Naomi. Annie confesses she misses everything. Jasper asks him what time he should pick her up for the dance. Annie says she doesn't think dances are his thing, but he says he wants to make her happy. At the golf course, Debbie apologizes for lying to her and tells him he telling her she is not his real mom was a low blow. She says she used to watch him sleep at night when he was young. Dixon says he is having a hard time adjusting and bonding with white people. He says he was telling himself to hang on until he turned 18. Dixon says Annie kept on trying to bond with him. Dixon says looking back, he never questioned she is his mom. At school, Silver hears Teddy make an announcement on the television he is done being a player. Teddy shows up with a bouquet of flowers and asks Silver to give him a chance. He asks her to go to the dance with her and she says no. Silver tells him it is not going to happen then leaves. At the dance, Ryan tells Liam that he is sorry he didn't believe him. He tells him and Ivy to enjoy the dance. Jasper buys tickets from Adrianna who is working the table. Adrianna is surprised that Jasper is dating Annie. Teddy asks Dixon if Silver looks beautiful and he says she does. Teddy moves to talk to her. Teddy asks Silver to dance with him as a friend and she agrees. On the floor, Silver says she told Naomi she wasn't going to be long.
After taking photos with Liam in a booth, Ivy notices Liam staring at Naomi. After Teddy kisses Silver, she pushes him away. She tells Naomi that Teddy is an ass, but she felt something when they kissed. Silver says Teddy is still a player. Naomi suggests she go for it. Jasper asks Annie if she wants to dance. As they walk to the floor, Jasper says he doesn't know how to dance. Annie gives him some pointers. Navid tells Naomi that Annie is dancing with a drug dealer, but Annie doesn't believe he is. Naomi realizes she drove Annie away from all of her friends. Silver returns to the dance floor to be with Teddy, but a girl gives him a hug. Teddy introduces the girl to the gang as his sister Savannah. She asks him what she is doing there. She asks him who is the girl he likes. Liam brings Ivy a sno-cone and sees she is sad. Ivy asks Liam if he has feelings for Naomi and explains she deserves to know. Liam admits he still does. Liam says Naomi doesn't want anything to do with him. Liam apologizes, but Ivy assures him she is fine. Ryan finds Adrianna with a bottle of vodka and explains he confiscated it earlier. He tells her to leave and have some fun just after he pours himself a drink and pounds it.
Annie tells Jasper he is quite a dancer. Dixon grabs Annie and asks her to come with her. He brings her to the rest of the gang for an intervention. Navid, Silver, and Naomi tell her they worry about her and she deserves better. Navid says Jasper is a drug dealer who pushed him down the stairs. Annie is hesitant to believe them. Annie asks for proof and Adrianna walks in and admits she has been buying drugs from Jasper. She says she is willing to come forward and tell the teachers. Annie says she needs to be alone then runs off. Silver and Naomi ask Adrianna if she is serious about what she is going to do. Adrianna explains that Jasper is a real bad guy. Naomi tells Adrianna that after they get back from St. Barts, they can talk. Naomi gets a message that shocks her. Navid tells Adrianna she doesn't need to go to the administration since she might get expelled. Adrianan says she is willing to take the risk, but Navid says he is not. Dixon meets with Silver who is waiting for a cab. She explains Naomi had to take care of something. Dixon asks her if everything is okay since they are friends. Silver admits that Teddy has been asking her out. She says she was going to talk to Teddy, but she saw him with a blonde girl. Dixon is about to explain that the girl is Teddy's sister, but before he does, Silver says she knows that Teddy is a player. Dixon says although Teddy is his friend, she deserves way better since she is amazing. Dixon says he doesn't know why he let her go, then gives her a kiss. Teddy sees them kissing and tells his sister they should leave. Silver asks Dixon what was that, then sees that her cab is there. She tells him they should talk after he gets back from her trip.
Debbie asks Dixon how the dance was and he says it was interesting. Debbie says she is glad they talked. Dixon says he thinks it is time for him to see his birth mom. Naomi visits Liam in his garage. She sees that he is working on something that is covered by a tarp, but he says it is nothing. Naomi says she got his text. They ask each other if they something to say. Naomi says she hoped he was different from his secretive self. She says she realizes that he is not even wiling to show her what is under the tarp. Before she leaves, Liam uncovers a boat he has been working on. Liam says things are bad in home and explains when he is upset he works on his boat. He says he used to sail with his dad before he went away. Liam says Jen told him that she was Naomi's neighbor. He explains he didn't learn the truth until it was too late. Liam asks for another chance just before they kiss. Meanwhile, Ivy cries while she looks at the photos she just took with Liam. Jasper finds Annie at the dock. Annie tells Jasper she knows he is drug dealer. Jasper says it is true, but he only sold to people who were going to buy anyway. Jasper tells Annie they know each other. Annie asks if he pushed Navid down the stairs. Jasper says he pushed Navid and he fell. Jasper tells Annie she doesn't need her friends. Jasper confesses he knows she ran over his uncle.
- Shenae Grimes as Annie Wilson
- Tristan Wilds as Dixon Wilson
- AnnaLynne McCord as Naomi Clark
- Jessica Stroup as Erin Silver
- Michael Steger as Navid Shirazi
- Jessica Lowndes as Adrianna Tate-Duncan
- Lori Loughlin as Debbie Wilson
- Matt Lanter as Liam Court
- Trevor Donovan as Teddy Montgomery
- Gillian Zinser as Ivy Sullivan
- Zachary Ray Sherman as Jasper Herman
- Amber Wallace as Lila
- Julianna Guill as Savanna Montgomery
- I woke up one morning surrounded by white people I was supposed to bond with
- – Dixon talking to his mom
Opening Tagline: Liam
- Liam apologises to Annie for not telling Naomi sooner, and mentions Jen blackmailing him.
- Naomi tries to make up with Annie.
- Navid tells Naomi that Jasper's a drug dealer.
- Teddy declares his feelings for Silver publicly and kisses her at the dance.
- Silver admits she has feelings for Teddy.
- First appearance of Teddy's sister, Savannah
- Dixon kisses Silver. Naomi and Liam reconcile.
- Naomi initiates an intervention to make Annie realise that Jasper's bad news.
- Dixon wants to see his birth mom.
- Ain't Gonna Lose You by Brett Dennen
- Desires by Montell Jordan
- Eyes Wide Open by Ragged School
- TiK ToK by Ke$ha
- Waiting for the Kiss to End by Nick Fowler
- When the Time is Right by Griffin House