Following a pep rally (Sandy has joined the cheerleaders!), Danny and Sandy's paths cross again. And while Danny is truly happy about their potential reunion, his image forces him to play it very cool. Sandy feels rebuffed, and Frenchy tries to console her by inviting her to a slumber party. But it doesn't help when Rizzo mimics Sandy's wholesome qualities. Rizzo leaves the party and is off to Lover's Lane with Kenickie, while Sandy needs some time by herself.

     The T-Birds decide to make Kenickie's car their automotive class project and to enter Kenickie in competition against the rival Scorpions at Thunder Road. They're off to plan the venture at the Frosty Palace where Danny runs into Sandy sharing a soda with Tom (LORENZO LAMAS), the school jock. Vi (JOAN BLONDELL), the fast-talking, heart-of-gold waitress, is at hand with a few wisecracks.

     Finally, Sandy and Danny manage a moment together away from all the others, and he apologizes for his behavior. To impress her, he goes out for athletics - but proceeds to fail at everything and even takes a nasty spill on the track hurdles. Sandy rushes devotedly to our injured hero, and the pair renew their mutual devotion.

    Things are not going as well for the rest of the kids. Rizzo and Kenickie have been fighting, and Frenchy - who had left Rydell for beauty school - is flunking shampoo-and-rinse. Her wish for guidance turns into a fantasy in which she is miraculously visited by Teen Angel (FRANKIE AVALON).

    The National Bandstand Dance arrives, and while Danny and Sandy go together, Rizzo goes with Leo (DENNIS STEWART), the leader of the Scorpions, and Kenickie turns up with Cha Cha (ANNETTE CHARLES), Leo's girlfriend. Eventually, the aggressive Cha Cha manages to steal Danny from Sandy for the dance-off, and the couple wins first prize. A teary-eyed Sandy watches from the sidelines and learns from the other girls that Cha Cha has been one of Danny's former summer romances.

    Later, Danny and Sandy make up at the drive-in when he asks her to be his steady, but the reconciliation is short-lived when he tries to take too much advantage of the moment. Meanwhile, matters are worse than ever for Rizzo, who is the talk of the drive-in when everyone discovers that she has missed her period.

    Danny and Kenickie, neglected by their respective girls, devote themselves to Greased Lightning and Thunder Road and Danny finds himself racing in place of Kenickie at the last minute. Surviving an attempted sabotage, Greased Lightning wins the race and Sandy realizes that she cannot ignore her feelings for Danny. Rizzo reveals that she is not pregnant after all, and she and Kenickie kiss-and-make-up.