Whilst on the run from a foster home, Jade tells boyfriend Drew she is enrolling at Waterloo Road, with much persuasion he decides to enrol as well. Michael and Sian face opposition to the newly built school opening from local headteacher Gerard Finlay. Lorraine is convinced by Drew to allow him to enrol, however when he lashes out Michael decides to only let Jade board at the school. New teachers Christine Mulgrew and Audrey McFall are introduced to regulars in the staffroom, Christine seems subdued until she is invited for a drink after work. Tariq struggles to come to terms with been a paraplegic whilst Rhiannon starts a bullying campaign against Scout.
Troublemaker Lula's home life spills into school as Tom attempts to uncover the root of her disruptive behaviour; a desperate Connor tries to out Christine's drinking; Josh helps Tariq face up to his disabilities; and Grantly deals with a spate of graffiti at the school house. Lula Tsibi's homelife is far from happy. Distressed following another heated argument with her over-bearing Uncle Lionel, Lulu runs to the sanctuary of her school but her behaviour irks the other pupils and gives the teachers cause for concern. Matters come to a head at Denzil's commemorative ceremony when Lula lashes out at Imogen and Sian. Far from being apologetic, Lula makes some unsettling comments about passing. And later, she has a run in with Tariq, hurtfully suggesting his disability is a punishment from God. Tom speaks to Lula's uncle Lionel. But when Lula hears this she tells Tom her uncle plans to perform an exorcism on her believing she's possessed. Terrified, she begs Tom to help her. Elsewhere Connor bugs his mother to lay off the alcohol but is met with Christine's usual hostility. Playing up in class, Connor attempts to shame Christine but it backfires and he's humiliated in front of his classmates. Concerned, Imogen tells Connor he can't look after his mother forever - advice which spurs Connor to take drastic action. Grantly is furious when his car is vandalised by Havelock kids but Michael wants to keep the peace and not involve the police. But while Michael attempts to build bridges with rival headteacher Gerard Findlay, Grantly can't help but rock the boat. Also this week, Josh tries to convince Tariq life is worth living, but Tariq isn't interested and Sian receives an unexpected visitor at the gates of Waterloo Road.
Tariq behaves strangely as the day of his kayaking time trial arrives - but it isn't until he gets in the water that his true intentions become clear. Rival headmaster Gerard Findlay (Taggart's Alex Norton) sets out to discredit Michael by plastering an archive news story about his past all over the school - and it certainly does the trick with Lorraine and Sian - while Christine and Connor's unhappy home life spills over into school.
Imogen's birthday arrives, but she doesn't want any fuss, only for her attention-seeking mother Sally to cause her no end of embarrassment. Eventually, Connor comes to her aid, and she ends up revealing a secret to him. Meanwhile, Sian reaches out to Michael's estranged father Billy, and rival headmaster Gerard makes further attempts to discredit his Waterloo Road counterpart.
Connor realises how much he has misjudged Caroline's illness. Michael has a chance of poaching one of his rivals all star students, Liberty but declines after she goes to the papers with a damning report of Havelock High. Janeece asks Chalky to help her out with Cheryl when she becomes ill and is sent home from the childminder.
Late for a meeting with Lorraine, Janeece leaves daughter Cheryl home alone. Later, Chalky discovers Cheryl crying, having hurt herself. He rushes her to A&E, but accidentally drops Janeece in it with social services. Janeece's first attempt at being a PA goes well, and Lorraine hints that she's always looking for new people to join her business. Back at school, though, Michael is livid that Janeece was lured away by Lorraine again. As he reprimands her, Janeece dashes off to the hospital without explanation, not realising that social services want to question her. Returning to Waterloo Road, Janeece fumes that Chalky got her into trouble. Fed up with being used - and worried about Cheryl's welfare - Chalky snaps, delivering some much-needed home truths to Janeece. The confrontation is a catalyst for change as Janeece makes some tough decisions about her future at Waterloo Road and her relationship with Chalky.Meanwhile, Rhiannon's bullying of Scout intensifies as she frames her for stealing. Scout feels increasingly isolated as everyone appears to fall for Rhiannon's ruse - including Maggie. Elsewhere, Christine struggles after her doctor reveals that she has alcoholic hepatitis. Fearful another drink couldhug her, she immediately stops - but soon suffers overwhelming withdrawal symptoms, witnessed by a full classroom. Also this week, Sian urges Michael to visit his father and make amends, but her pleas fall on deaf ears, forcing Sian to reveal Billy's shocking secret.
Maggie calls off the wedding to Grantly, saying they're to busy to get hitched. However, when Scout has suspiciouns something is amiss after hearing Maggie making a secret phone call, Along with Phoenix, she tells Grantly that she thinks there's another man. Their suspicions are confirmed when Grantly confronts Trevor - Maggie's estranged husband. Grantly discovers Maggie is being blackmailed by Trevor, who she never divorced. With their wedding day in Jeopardy, Grantly Hatches a plan to make Maggie his bride, with assistance from Scout and Phoenix. Elsewhere, At The School Gates, Sian arrives to be confronted by Madi, who questions of her whereabout's overnight, Keen to keep her love life quiet, Sian steers the conversation away by noting Madi's belongings dumped - her mum has thrown her out. Later, Madi is drawn by Ray, a good looking businessman who is leading Lorraine's work experience classes. She Sets her sights on Ray, Unaware he is dating Sian. Upset by a phone call from Home, Madi turns to Ray for comfort but misreads his intentions and tries to kiss him. When Ray doesn't recipotate, she is humiliated and vengeful, Madi Posts a rumour on a social networking site that he kissed her, but her lies impact on her friends. Meanwhile, Josh faces his future after Waterloo Road but worries of Tom's reaction.
A new boy makes a impression on Chalky. Connor helps Caroline mark her coursework when she falls behind, which backfires after he gives everyone a top mark. Madi decides she wants to leave. Michael addresses his family problems, whilst he and Lorraine struggle with the father of a pupil who they want to enter a competition, who is disallowing it on his anti-capitalist beliefs.
Waking from a nightmare, Rhiannon heads to the bathroom where she takes out a small tin. But before she can open it, she's disturbed by rival Scout. Later at school, Rhiannon finds a quiet spot and takes out the tin again, revealing her self-harming kit. Rhiannon's disruptive behaviour in school is noted by Audrey, who excludes her from class. Believing she's compensating for her weight issues by acting the class clown, Audrey urges Rhiannon to join the lunchtime power-walking club. However, when Rhiannon lags behind the others, Audrey asks Scout to look after her enemy. The two girls bicker, but soon start to joke around together. The moment is short-lived, though, as Scout notices blood on Rhiannon's t-shirt. Making Scout promise not to tell anyone, Rhiannon confesses that she cuts herself because it makes her feel better. Meanwhile, as Christine and Audrey's bullying case reaches a climax, they agree to mediation. But when Audrey admits some of her actions could be misconstrued, Christine seizes the opportunity to push the case further. Elsewhere, new boy Kevin takes drastic action to gain credibility with Connor, which threatens his future at Waterloo Road, Sian is horrified to discover that Billy has asked Michael to end his life.
Kevin reaches out to Chalky. Michael's decision changes his life forever. Lorraine decides the best way to get the academic records up to scratch is to get rid of the under-achievers. Christine is back on the booze and doesn't hide it from Connor. With it been the last day of term, Connor has told his mum he's planning on spending the half-term holiday with Imogen, but she has other plans. Tariq is accepted onto the para-canoeing team.
Sparks end up flying when the notorious Barry family join the school. Barry Barry causes trouble straight away after his affair with another pupil's mother is exposed. Scout manages to begin a feud with returning teacher Nikki Boston. Imogen is worried that Christine is attempting to keep Connor away from her.
After Phoenix and Harley win the lottery, their good fortune ends up being overshadowed by the sudden arrival of their father, Nelson. Nikki ends up having to question her actions towards Scout. Michael manages to finds a friend in Christine after he receives some news about his court case.
Imogen challenges Dynasty over her plan to get a boob job, but can Imogen face her own image issues? Elsewhere, Nikki's antagonism with Scout builds when she accuses her of stealing Lorraine's car, and romance is in the air for Christine and Michael.
Christine finds her world being turned upside-down by the arrival of her estranged husband, Joe. Nikki has no choice but to reassess her view of Scout. Connor considers telling Imogen the true about the fire.
Kevin is suspicious when he discovers that Chalky is not who is says he is, but what dark secret is he hiding? Sian's plan to keep the Barrys apart backfires, and Connor is forced to face up to his actions when he reveals that he started the fire that burnt Imogen.
Former pupil Bolton Smilie causes a stir when he turns up in his army uniform to see Tom, but will Tom discover his real motivation for coming back before it is too late? Meanwhile, the Barrys' treatment of Connor leads Imogen to realise she still has feelings for him.
Emotions stat to run high after Maggie finds out about Jade plans to give up her baby and have it adopted. The PRU pupils get ready to prove their worth to the school and Sian. Connor is surprised after he finds a pregnancy test.
Tom ends up clashing with Michael over his decision to ban player Kacey from the boys' football league final, causing Kacey's identity issues to come to a head with some shocking results. mogen refuses to wear the engagement ring that Connor has given her.
Barry's behaviour finally makes Sian snap. With Sian's teaching career on the line, can Michael and the school save her? Elsewhere, Christine discovers Connor and Imogen are engaged, Kevin and Chalky's new phone app causes a stir and Scout's mum makes an unwelcome return.
It's exam time at the school and Scout's promising future is in jeopardy thanks to his mother, Tina. Connor feels torn between the two women in his life as his secret wedding to Imogen grows closer. Chalky and Kevin have a tempting opportunity.
Lula is not happy after new pupil Fergal tries to get Harley to behave out of character. Lorraine ends up making a surprise announcement, Grantly finds it hard to keep his illness under wraps.
Rhiannon goes off the rails when she starts seeing Naz, son of kebab shop owner, Usman. Usman won't take any nonsense though especially when Maggie confronts him. Audrey's friend Ndale helps fix her classrooms blinds and Sonya spots an opportunity in hiring him as the new handyman.
Dynasty finds her complete world being turned upside down following the sudden arrival of her criminal ex-boyfriend, Steve-O Malone, who wants a fresh start with her. She has eyes for somebody else though. Maggie returns to work after Lorraine lacks compassion. Audrey attempts to keep her job while Tom makes a life-changing decision of his own.
Sonya has a really bad day which sees her being dumped by Ndale and hospitalising Rhiannon. Lorraine and Nikki end up coming to a crossroads in their relationship. Steve-O increases his grip on Connor and Kevin. A former pupil makes a surprise return to the school.
Steve-O continues to bully Connor and Kevin, forcing Dynasty to make a surpring decision. Christine thinks about leaving Waterloo Road. Lula makes an unlikely friend in new science teacher, Esther Fairclough.
Desperate to rid themselves of Steve-O, Kevin and Connor enlist the help of Barry with a dramatic, but dangerous, plan; Sonya gets involved in love rival Audrey's wedding - much to Ndale's horror; and Michael clashes with Lorraine, forcing him to make a decision which will change Waterloo Road forever.
Audrey and Ndale's wedding day arrives but with a jealous Sonya as a bridesmaid, things aren't guaranteed to go to plan. Michael's keeps his plans to save the school a secret from Christine. Lula steps up her animal-rights campaigning. Nikki's first day as head teacher doesn't go the way she hoped.
Michael returns to the school and makes one last ditch effort to stop Lorraine from making the school fee-paying. Lula's campaign against Nox Pharmaceuticals reaches a shocking conclusion. The rift in the Barry family increases forcing Carol into taking some drastic action.
The Barrys family get ready to air their dirty laundry on national television. Kevin ends up under the spotlight though after an unexpected guest shows up. Christine decides to enjoy her new role as the school's head teacher with gusto. Maggie needs to make a heart-breaking decision.
Everybody is pleased to have Grantly back now that he is over his illness. Tom gets ready to donate his kidney to his life-long friend. After Kyle Stack shows up at the school though, the day ends in disaster as Tom attempts to help him.