Stacy Hamilton (Jennifer Jason Leigh) is a pretty, but inexperienced, teen interested in dating. Given advice by her uninhibited friend, Linda Barrett (Phoebe Cates), Stacy gets trapped in a love triangle with nice guy Mark Ratner (Brian Backer) and his more assured buddy Mike Damone (Robert Romanus). Meanwhile, Stacy's classmate Jeff Spicoli (Sean Penn), who lives for surfing and being stoned, faces off against Mr. Hand (Ray Walston), a strict teacher who has no time for the slacker's antics.

Lovely teen Julie Richman (Deborah Foreman) is steeped in the excessive, pink-clad culture of the San Fernando Valley, complete with her narcissistic boyfriend, Tommy (Michael Bowen). At a party, however, Julie falls for an edgy Hollywood punk named Randy (Nicolas Cage), and the two begin an unlikely romance. Torn between fitting in with her superficial friends and embracing a more non-conformist lifestyle, Julie ultimately has to decide to stay with Tommy or take a risk with Randy.