They decide to trap all the suspects in the same room until someone breaks. While Ally impresses herself as an amateur tour guide, Austin tries on some movie memorabilia and inadvertently gets his feet stuck in a pair of Dorothy's silver shoes. They have to choose one of five topics that will teach them about responsibility and how to deal with life's problems. The group later goes to check it out, but when Austin, Trish, and Dez accidentally ruin the song in the recording studio, Austin gets released from his contract with Starr Records. Meanwhile, Dez gets advice from Austin about a girl he likes. However, since Ally is a horrible dancer she asks Austin to give her dance lessons.
Brooke tries to sabotage Austin's dance as well. Kira has a gig and before she performs her song Ally goes to Kira and gives her the song and asks Kira to tell her father to sign Austin back to his record deal. She mentions that one of her relatives, Emilio, a big-time club owner, will be at her party. Ally helps out Austin with his fear by telling him how she got her stage fright. In response, Val sues Austin, Ally, Trish and Dez, claiming that the song was stolen from her newest artist and the matter heads to court where the foursome decides to represent themselves. However, since Ally is a horrible dancer she asks Austin to give her dance lessons, but accidentally breaks his leg during a practice. Austin, Dez, and Carrie follow, hugging her for comfort while she cries.
Jessie takes a helicopter to Times Square so Austin will be there on time. Jessie wants to sing a song with Austin and when they don't like the lyrics that Jessie wrote, they found a lyric that they wrote but it turned out that it was Zuri so Jessie tries to find a way to make sure they don't find out it was Zuri so it wouldn't ruin her chance to sing a song with Austin. Meanwhile, Ally is called back into the music studio to finish writing and recording new songs. Austin convinces his friends to help him get a big comeback. Dez agrees to give her the gift card at the end of the week, but each time she insults him, he buys something with the card. Austin gets Ally's necklace from her grandmother, but accidentally drops it in the chili pot right before the judging.
First, Austin must answer a questionnaire, but Trish thinks he is boring so she decides to fill it out for him instead. After Dez finds out he is just an intern he tries to help Spike by keeping Brandy under control. Throughout the episode, Austin and Ally purposely go under a mistletoe and try to kiss, but they are interrupted by Dez twice. After saying she doesn't care, she goes into the school auditorium to cry. Ally, Trish, and Dez run into the library to tell Austin who is eating pancakes the librarian made him.
Trish and Dez try to help Austin and Ally to come up with a plan that will relieve Austin's boredom and Ally's stress. After Austin becomes jealous of Ally spending time with Gavin writing songs together, he realizes that he still has feelings for Ally. Chuck is found singing Ally's new song, Kimmy has the same cutout letters used in the note by her locker, and Miles has Ally's bookmark in his pocket. They end up breaking it, then tossing the pieces back, not wanting it anymore. Although Trish really booked him at Tim's Square Pizza, so she now has to fix the whole situation. Now, the gang must find a way to take him down.
Kira has a new album that she has gone to record. The librarian suggests that Trish and Dez search the school while Austin and her stay in the library. In the end, the two make up and become friends. After Ally refuses to help him, Trent steals her newest song that she worked on with Austin. When Ally finds out, she is crushed that her friends did not believe in her. Everything turns bad when the producer of the movie wants the song, but because of their disagreements, the song doesn't sound good.
Jimmy is thinking about lifting Austin's ban, but changes his mind when he finds out that Austin has been singing without his permission. Austin proves his comprehension of Spanish and Señora Gomez passes him. Ally starts blaming Austin, Trish, and Dez for this. Can they maintain both their personal and professional relationships at the same time? Trish and Dez come up with an idea so the two could forgive each other. Trish helps Ally take the cake to the life skills class at school. Along the way, they find that Shelby is a much better dancer than a violin player.
Austin and Ally are forced to perform for the Zaliens so they won't eat their brains, but they are then held captive by the Zaliens to be taken to their home planet. She seeks advice from Dr. Trish and Dez are left to bring Austin and Ally back together as a team while still finishing their movie. During the award show, Austin goes on stage and confesses that he doesn't care about his career anymore. Big Mama bursts through the boat door, but the group works together and makes her leave.