Mitch is becoming more interested in the private investigation business. Although he loves life guarding, he feels that he wants to try something else. And being a private investigator has always been one of Mitch's dreams. Therefore, he ends up starting a detective agency with Garner.

Logan alerts headquarters about the accident at the oil platform. After that, he dives down to rescue Stephanie and Tom and bring them to safety. Inside the platform, Cody is forced to rescue Neely who is stuck under a ladder. Then they locate Fern and Larry and finds out that Larry is trapped and can't feel his legs. When the lifeguards and the Coast Guard arrive, they plan to lift the platform because the only way to get in is from underneath.

Kaye Morgan is volunteering at the Malibu School for the Blind, and Hobie is helping her with the kids. The kids are supposed to boogie-board, but one of the kids Charlie doesn't want that. Instead Mitch gives him a metal detector to play with.

Diablo Cove is one of the most popular surfing areas in Los Angeles. But unfortunately because of a storm drain, the water has been polluted and by that endangered the health of those surfing there. Cody and Neely take water samples there and discover dangerous levels of E Coli bacteria. But two teenagers named Stick and Daryl surf there anyway. When one of them gets sick and must be rescued by Cody and Neely, they discover that his back is completely covered with nasty rashes. After that, the lifeguards close the beach.

Mitch's mother Irene comes to Los Angeles for her annual visit. However, this year Mitch and Hobie realize that everything isn't what it used to be. Irene not only forgets her carry-on bag on the plane, she goes onto the wrong plane as well. Because of this Mitch thinks that something is seriously wrong with her.

C.J. returns from France without Matt. She, Stephanie and Caroline are training some Junior Lifeguards. In order to improve the girls' lifeguard skills, they separate them from the boys. During an exercise where the girls are supposed to rescue a dummy, they get distracted by the boys instead and no one even notices the dummy who sinks to the bottom of the ocean. Then they decide that the only way to teach the girls teamwork, is to take them to Catalina. Unfortunately for them, Neely invite herself and C.J. and Caroline become furious. But the two of them decide to give Neely a chance.

One of Hobie's friends almost die while he surfs at a place known as "The Shredder". Mitch gets real shaken up about the incident and tells Hobie that he could have been the one who almost drowned. Mitch closes down that section of the beach to keep anyone else from beinghuged there. But Mitch's signs doesn't stop Hobie's friend Isaac from going there to surf. He thinks he will get his father's attention by doing so. Hobie tells Mitch about it and he and Stephanie are able to rescue Isaac before he injures himself badly. When Mitch tells Isaac's dad about it, he gets upset and tells Mitch to mind his own business and then he leaves headquarters.

From headquarters, Caroline sees that the local surfers are getting territorial again. When Mitch is forced to make a rescue, the locals and the victim's friend end up in a fight, but Logan breaks up the fight. Logan is still pursuing his business venture of Aussie swimwear and he has an important meeting with a major clothing manufacturer. But since his car is with a mechanic, he has to borrow one of the other lifeguards' cars.

Matt has come back from France for his 10 days as a lifeguard. But he is vague when it comes to his relationship with C.J. Matt and Neely's reunion is explosive because both of them really hate each other. Mitch puts them in the scarab in order to find out if they can work together.

After finding an abandoned baby in his tower, Logan wrongly assumes he's the father and decides to raise it. Cody participates in the trials for the Olympic swim team.

Caroline blames herself after a victim drowns after a nighttime rescue. Spurred on by Neely, Caroline takes a walk on the wild side.

After swimmers are attacked by an alligator living in a storm drain, Mitch, Logan and Cody hunt for the creature. C.J., Caroline and Neely compete to become the cover model for Inside Sports magazine.

While vacationing in Mexico, Mitch and his new girlfriend witness an attempted cuddle and are then hunted by the huggers. Country and Western singer Jesse Lee Harris helps Logan and the Baywatch lifeguards raise money to save a ranch that rescues endangered horses.

When Logan is terrorized by a mad man, Caroline dreams that the detectives from TV show, Charlie's Angels, arrive at Baywatch to help him. In her dream, Caroline is Kelly Garrett, C.J. is Jill Munroe and Stephanie is Sabrina.

Hulk Hogan enlists the help of Baywatch to save a youth recreation center from being closed. In a charity match, Hulk challenges fellow wrestler Ric Flair. Stephanie learns she has developed melanoma (skin cancer) from her years of working on the beach.

Mitch's life flashes before him (in flashbacks from previous episodes) when his parachute fails while sky-surfing. Tabloids follow CJ's relationship with a football player.

Stephanie wants to participate in the annual lifeguard sailing regatta. But she has no one to do it with. Therefore she is recruiting lifeguards for the job. She ends up with a crew that consists of her, Caroline, Cody, Neely and Newmie. The Baywatch team is competing against South Bay. The Captain there is Kurt Daniels, Neely's old boyfriend. In order to make the competition more exciting, Neely and Kurt make a side bet. If Baywatch wins, Kurt will be Neely's slave for one day, and if South Bay wins Neely will be Kurt's slave for one day.

Mitch and Caroline help reunite an amnesiac Vietnamese refugee with her American GI father. C.J. and Cody help a wheelchair-bound comedian realize his dream of swimming in the ocean.

Mitch, Stephanie, C.J., Matt, Caroline and Cody travel to Hawaii to train with Hawaiian guards. Once there, Stephanie finds romance with a Hawaiian lifeguard, Logan decides to compete in a surfing competition and a fishing trip becomes dangerous for Mitch and Matt.

Mitch and Matt are saved by Hawaiian islanders. Stephanie helps an unlucky camera man find love. Logan proposes to Caroline.

Kaye is reunited with an old flame, a surfing champion surfer, arrives at Baywatch for a local surfing tournament, however, disaster strikes. Stephanie undergoes surgery for her melanoma as her friends patiently await her fate. Caroline catches Logan with Neely.

While Stephanie is training Cody in underwater search-and-rescue techniques, Cody finds a Spanish medallion. He has the medallion appraised and the shop owner offers Cody 00 for it. But he doesn't accept it and is convinced that he will find more gold at the bottom of the ocean. He is convinced that a Spanish galleon is buried somewhere at the bottom of the ocean. He asks Stephanie for permission to go out searching. But Stephanie is concerned that his training will suffer if he does so. Anyway, she agrees to join him and search for the possible gold treasure.