Air Date March 3, 1997. Josh continues Kimberly's plan to break up Megan and Michael when he plays all three of them against each other and sets Megan up to be arrested for solicitation to make it complete. Meanwhile, Matt's angry and rebellious 16-year-old niece, Chelsea, arrives in town for the funeral of her father (Matt's older brother), and causes concern for Matt and his mother. After a torrid night with Craig, Amanda realizes her mistake and rejects him, but he becomes oblivious to it and still wants in on a relationship. Taylor's world comes crashing down around her after Nick gives Kyle more proof of her and Peter's affair, in which he throws her out of his apartment and forces Nick to leave town after he beats Peter up.

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Air Date Feb 24, 1997. A nearly broke Craig moves into #8 apartment at Melrose to continue his pursuit and revenge against Amanda. Meanwhile, Josh introduces himself to Michael and threatens to expose Megan's past life at a hospital benefit, which all turns out to be Kimberly's plan to break up Michael and Megan. Peter and Taylor plot a dangerous scheme to steal Nick's incriminating photos of them together when Taylor drugs him long enough for Peter to sneak into his apartment to take the pictures. Undaunted, Nick and Craig switch to "Plan B" where Craig informs Amanda of Peter's liaison with Taylor, and she finally gives herself to him.

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Air Date Feb 17, 1997. Jake returns to Los Angeles where he seeks another chance to get Alison back. Meanwhile, Nick threatens both Taylor and Peter after snapping a few compromising photos of them together. Michael is forced by Kimberly to choose either her or Megan. Carter continues to enjoy his view of the real world. But when Carter learns that he's a part of a competition for Sydney, he realizes that the world is not for him and decides to go back to his reclusive business world. At the end, Megan gets an unpleasant surprise when she is visited by Josh Laughlin, her abusive former pimp, who takes her hostage.

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