Original Air Date: March 12, 2007
Lauren goes over the plans for New Year's Eve with Audrina:
- Lo is coming up with a bunch of other friends from Laguna. Lauren hasn't spoken to Lo for two years because of something to do with Jen.
- They're going out in a big group which will eventually include Spencer and Heidi.
- While the girls are going out together in a limo, Spencer is not allowed in the car with them.
The girls go over the plan with Whitney, who remembers that she kissed three guys last New Year's Eve. Don't know if any of them will do a three-peat, but it should be a good time.
Heidi and Spencer shop for New Year's Eve outfits, Spencer getting Heidi to promise that their holiday dinner will be just the two of them. Heidi reminds Spencer that she wants to spend the night with Lauren, too. In response to that, Spencer asks Heidi to move in with him. Heidi has her commitment to living with Lauren, but Spencer can't resist getting in that he resents the commitment affecting their relationship. It doesn't help Heidi that at the salon she has to see the evidence of Lauren and Audrina getting closer -- from a joint New Year's Eve resolution to a girls' only dinner of pizza and champagne, the two are in sync in a way that Heidi and Lauren used to be. Heidi cuts out to join Spencer for dinner. Spencer wants to know why Lauren can't live with someone else like Audrina. Hmm, Spencer seems to be full of interesting ideas...
Hillside Villas. Lo and the Laguna girls are at the apartment, taking pictures before they go out for the evening. Lo wants to know where Heidi is, expressing regret at missing her. Join the club, sister. There's no time for regret, as the girls have to get to Area. Lauren's date is waiting. The fun continues even when Spencer and Heidi make their entrance. Heidi and Lauren maintain their distance, though Heidi tells Lo about Spencer's proposition. At the stroke of midnight, Lauren kisses everbody but not Heidi. Fortunately, Spencer is there for her, especially when Lauren and the girls make an exit without saying goodbye to Heidi.
Back at work, Heidi expresses her disappointment over New Year's to Elodie, who is sympathetic. Elodie seems a bit unsure of Spencer asking Heidi to move in with him. At Kelly's Coffeehouse, Lauren tells Whitney about her New Year's Eve date. Though the best part was seeing Lo and old friends. Too bad Heidi couldn't join in. So who are Lauren's true friends?
Spencer and Lauren go to dinner at I Cugini, where they toast how they love each other. Spencer thinks that Heidi's got baggage, and resents that she chooses to live with Lauren. He doesn't hesitate to bring up New Year's Eve, which reminds her that Lauren spent the summer with Jason so why shouldn't she consider living with Spencer. Lauren and Lo have dinner at Cafe Sushi. After a minor ginger mishap, Lo is happy to tell Lauren that Jen is pretty much persona non grata with her as well. And then she takes Lauren by surprise when she asks who will be moving into the apartment when Heidi moves in with Spencer. Lauren can't believe what she's hearing, and Lo can't believe Heidi didn't tell her already. Awkward!

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