Riyo moves in with Katie and Rachel but there's a surprise as former Miss USA Tara will be joining them for another year.
Former Miss USA Tara Conner comes back which makes it awkward at Pageant Place as Katie and her haven't talked since their falling out.
As the hectic lives of the beauty queens march on Katie's immaturity and lack of responsibility starts to affect her job and her relationship with the other girls.
After talking about what it's like to live with Katie, Rachel and Tara start to form a friendship and later Katie and Tara finally clear things up between them.
As she prepares to crown Miss Teen USA 2007, Katie has to deal with saying goodbye to the girls, while juggling her relationship with Josh.
Katie Blair hands over her crown to Miss Teen Colorado, Hilary Cruz, but Miss South Carolina's infamous answer keeps stealing the spotlight from Hilary.
It's non-stop action as the girls pose for an ad campaign and roadtrip to Vegas for the MTV Video Music Awards, where (former Miss Teen USA) Katie makes a surprise visit.
In the apartment, Rachel, Hilary and Riyo are enjoying a lazy afternoon and comment on how happy they are it is just the three of them, unaware that Katie and Josh have returned to New York and are about to stop by for a surprise.