Set two opens with about a month having gone by since the end of set one. Gregg is still greatly depressed over losing Agnes. Kendra has just recently returned to town with her new husband, Andre. May rejected Derek's proposal and dumped him, saying he's pathetic. Floyd and Gillian are continuing to date and are on the verge of falling in love. Agnes is in full bloom and she and Jack are happy. Norma and Steven are still dating.
Wendy has gained closure on her relationship with Jude. She has thrown herself into work and has become a surgeon at the hospital. When her friends learn she and Andre have married they throw Kendra and Andre a party. Kendra then learns that Eli has left town due to her leaving him at the altar. With both of them now single Derek decides to put the moves on Wendy, but is stopped when she comes to Kendra and Andre's party, with a date.
A new resident to town, Kline Urschel, peeks the curiousity of all it's residents. At the party Agnes goes into labor and is rushed to the hospital where she gives birth to a daughter. She and Jack name the baby Elsie. Kendra then talks to Agnes and the two make peace as she is now her step-mother. While at the hopspital Gregg meets a co-worker of Wendy's, Wednesday Chapelton. He then becomes smitten with her. Kendra then makes a discovery of her own, she is pregnant!