Elite teens from around Australia find placement in Arcadia House, a hostel in Sydney. Shy island girl Ava must cope with a new, cool music school, a haunted bedroom & her desire to make friends despite her crippling shyness.

Mick and Vee resort to a team-building scavenger hunt to get the kids to bond but Lily escapes the event and heads out to find the Sydney she remembers from her early years with her mother.

When an opportunity to further develop her friendship with Jasmin leads to an opportunity to sing with a famous DJ, Ava must face the question of how far she is prepared to go to succeed in this new city.

Levi discovers Reece is homeless and sleeping rough in the school gym; Dylan receives a visit from his high profile dad; and Lily challenges Zoe to a boxing match to settle things between them.

Out one night doing his stencil work, Dylan is confronted by the local graffiti crew. He gets away but the next day realises that one of the crew is Ryan, a student at SIM. He finds the courage to come clean to Ryan.