Landlady Sydney Andrews has made herself into the a central figure in the lives of all her tenants, especially David Breck, the son of her ex, Dr. Michael Mancini. Other tenents include publicist Ella Simms; Auggie Kirkpatrick, a sous chef; Lauren Yung, a medical student; and Jonah Miller, an aspiring filmmaker.
In the wake of the hug, the Melrose Place tenants try to go back to a normal routine. Ella learns from her boss that her job may be in danger due to a recent merger. In need of tuition money, Lauren agrees to go out on another date in exchange for money.
Jonah becomes enraged when he finds out Riley hasn't told her family that they are engaged. After they fight, Riley turns to Auggie for comfort. Caleb exchanges words with Ella after her director for the music video quits, leading Ella to have Jonah fill in at the last minute. However, the lead singer may be more than Jonah can handle, which puts Ella's job in jeopardy once more. Meanwhile, David accuses Michael of Sydney's hug; Lauren applies to work on Michael's team at the hospital; and Violet continues to make her move on Auggie.
Jane Mancini, Sydney's sister, arrives in Melrose Place to announce that she's inherited the building from Sydney. She later threatens Ella with incriminating e-mails she sent to Sydney unless she dresses a client for a movie premiere in one of Jane's designs. Desperate, Ella asks David for help. Detective Rodriguez asks Violet about her connection to Sydney, but Violet flees her apartment through her window. Lauren meets a John at a hotel bar when Toby stands her up, leading her to make the decision to take her side job to a new level. However, Wendi, a local madam, threatens Lauren to stay away from the hotel.
As a result of Jane's tip, the police bring Ella in for questioning about Sydney's hug. Lauren is torn between going on a shopping date with Riley for her wedding and impressing her new boss Wendi who just set her up on a "date." A stunned Jonah is accused of stealing a diamond necklace from a mansion he videotaped for a realtor, but becomes even more upset after Ella mentions a similar necklace that she saw in David's apartment. Violet sabotages another employee so she can get closer to Auggie.
Riley is approached by a famous fashion designer and decides she must be the new face of his denim jeans campaign, much to Ella's dismay. Wendi sends Lauren on a yacht but she panics when she sees David there too. Violet fakes an illness so she can see Michael at the hospital, as part of her plan to get back at him for the way he treated Sydney. Jonah is excited about the opportunity that came his ways, Riley then turns downs the offer from Anton V.
Ella and Riley head to the Anton V photo shoot where they meet the photographer, who attempts to coax Riley to do a topless shoot. Meanwhile, Jonah is invited by a producer's development executive for drinks, and Violet makes another play to get Auggie.
Riley helps Jonah film a wedding, but the two get into a big fight in the middle of the ceremony. Putting her relationship with Jonah first, Riley breaks off her friendship with Auggie, who doesn't take the news very well. Ella discovers Lauren's expensive new clothing and lingerie plus a large envelope of cash and confronts her room-mate about the late nights she's been working. David fears he may be responsible for Sydney's death.
After learning Auggie's blood was on the hug weapon that killed Sydney, his apartment is searched they then demand the other residents say where he went that night. Riley is conflicted about helping the police, but Jonah pushes to do so as she knows where Auggie is staying. Jonah pretends he's engaged to Ella who really gets into the role playing. David arranges a secret play date with his brother Noah, but after the he hurts himself, Lauren must come to the rescue and risk the wrath of Michael finding out.
Ella and Caleb are shocked when agency owner Amanda Woodward arrives and fires half of the staff, including Caleb. Meanwhile, Auggie finally gives into Violet's flirting, and David asks Lauren out.
Amanda sets her sight on David. Meanwhile, David and Lauren continue to bond, and Ella tries to get her way and help Jonah obtain a new job.
Jonah and Riley travel to Las Vegas to elope. Ella arranges a meeting with a producer for Jonah. Meanwhile, Lauren seeks David for help after some problems she has with her clients. David finds out about Sydney's hugger. Amanda and Violet find a common interest.
Violet asks Auggie to leave town with her. Amanda puts Ella in charge of a lavish party at her house for the arrival of her boyfriend Ben. Riley asks Jonah if they can start over. Amanda spies Ella and Ben together in a compromising position, she lashes out.
Sexy Drew Pragin moves into Auggie's old apartment and immediately clashes with Lauren. She becomes even more upset when he shows up at the hospital as the newest resident. Riley asks Ben for a job, which infuriates Amanda, and David receives life-changing news from an unexpected source. Meanwhile, Ella makes an unrealistic demand of Jonah that backfires.
Ella is a little overwhelmed by Jonah's constant attention and decides couplehood might not be for her. Lauren succumbs to Dr. Mancini's threats and David decides to buy Coal, but the price turns out to be a little higher than he thought. Meanwhile, Drew moonlights in a band and Amanda catches Ben and Riley in a compromising position.
Ella discovers someone is embezzling from WPK and framing her for it, she investigates and starts with Jo, who concludes Amanda is up to her old tricks again. Jonah decides to throw a party in the courtyard to celebrate his newfound success. Jane confronts Amanda for not firing Ella and runs into Michael. Lauren is shocked after Michael tells her he'll reveal her secret if she doesn't sleep with him, she makes a harsh decision. Riley and Drew share a sweet date.
Lauren helps David out of a jam in hopes of earning his forgiveness; Ella tries to clear her name; Drew helps Riley throw a fundraiser.
Amanda fires Ella from WPK, Ella then searches for anything to blackmail Amanda. Unfortunately for one of the ladies, the end result is worse than she could have ever imagined because only one will be left standing when the episode ends. After attending a NYU reunion, Jonah asks Riley to reconcile and Lauren and David get back together but a jealous Morgan retaliates and puts Lauren's life in jeopardy.