Drummond and Mr. Ramsey learn the truth about Mr. Horton, the seemingly friendly bicycle shop owner with a very sinister side. It soon becomes a race against time to get details out of Arnold after learning that Dudley is about to become Mr. Horton's latest victim.
Kimberly impresses professional skater Dorothy Hamill with her ice skating, and is taken under her wing. But Kimberly is overwhelmed by the hard work it takes to become a professional skater, and devises a way out.
Arnold, realizing that Kathy is struggling to fit in at public school, encourages her to become hall monitor. He quickly realizes that he has created a monster when she begins to take her job too literally.
Arnold becomes attached to a cricket that he believes is bringing him luck. Unfortunately, Drummond and Willis do not share the same warm feelings toward the cricket, which keeps them up at night.
With Willis needing a quiet room to study for his SAT tests, Arnold and Drummond agree to become roommates so that Willis can have Drummond's room to himself.
As a reporter for the school newspaper, Arnold learns that drugs are being sold on school grounds. This attracts the concern of First Lady Nancy Reagan, who comes to the school to talk about her anti-drug campaign.
Arnold is excited about auditioning for the role of Romeo in the school play "Romeo & Juliet" until he finds out that his nemesis, Lisa, got the role of Juliet.
Willis asks Kimberly to help a classmate who lacks sensitivity to try and get a girl at school. However, the plan backfires when he falls in love with Kimberly.
In his first few days at junior high, Arnold has trouble breaking out of Willis's shadow. So he comes up with a plan to kidnap the school mascot and then become a hero by "finding" and returning it.
The Drummonds' Dutch relatives come to visit. However it's anything but a happy visitation for Arnold and Willis, who end up taking the rap for the mischievous behavior of their cousin Hans.
With her 18th birthday approaching, Kimberly decides that she wants to delay her college education so she can live in Europe for a year. However, Drummond is dead-set against the idea.
After appearing on TV for giving a huge donation to charity, Drummond is threatened by extortionists. Instead of giving in to their demands, he tries to catch them in the act by hiring a bodyguard who turns out to be the female version of Mr. T.