The season deals with the Baxter family, Raven, Cory, Tanya Baxter and Victor Baxter as they continue to manage with Raven and her ability to see into the future.
Raven's father opens his own restaurant, and Raven wants to control everything that happens. Raven then has a vision of Eddie and Chelsea -- allegedly -- kissing. So she disguises herself, and goes to Chelsea's house to find out what is really going on. As it turns out, they were really just practicing salsa dancing for a talent show at "The Chill Grill"'s grand opening. At the restaurant, she tries apologizing to them while they dance.
On Halloween, Victor accidentally switches Raven and Chelsea's burgers at the Chill Grill, Chelsea wears a badge that has a cow on it after being ashamed that she enjoyed the bite of Raven's hamburger that she ate. They then conjure up a wishing spell from Viv's book and use it to go to Alana's, Raven's arch-nemesis, Halloween party that they weren't invited to. However, Chelsea's badge falls into the cauldron they were using, and this causes Raven and Chelsea to both slowly turn into cows. They go to the party in an attempt to stop the spell as their body and behavior continue to change into that of two cows. Meanwhile, Cory chooses to go trick-or-treating with his friend rather than his parents, upsetting Victor and giving Tanya the idea that the two of them should go trick-or-treating without their children.
Raven sees a vision of a TV cart running into Alana in the school hallway, so when the TV cart comes, Raven pushes Alana out of the way and accidentally into blue paint. When Alana goes to the hair salon, Raven goes there to apologize, but Raven overhears Alana saying she will get revenge on her. Raven pretends to be a hairdresser, and when she's fixing one of Alana's hairs, her gum gets stuck to it. Loca and Muffy point out that Raven has damaged Alana's hair, and Raven runs out of the hair salon silently. Raven tells Chelsea about fixing Alana's hair. That night, Cory and his friend William (who have chicken pox) agree to help Raven the next day with technology, which helps her avoid Alana at school.
When Principal Lawler introduces a new school uniform, Raven decides to protest, and ends up being the only one. But was supported by Alana and her posse. When she has a vision of the group seeking revenge, Raven attempts to stop their scheme, which involves a large wheel of smelly cheese being put into a hot air vent, and framing Eddie and Chelsea. To prevent them from getting in trouble, Raven enters the air vents only to find herself stuck, realizing the only way left to get rid of it is to eat it. Meanwhile, Cory's pet gets a credit card in the mail, which Cory and William use to buy expensive stuff, until Victor tells them that someone will eventually have to pay for it.
Raven goes on her first real date with her crush, Devon, and grows anxious when she has a vision that he's going to kiss her on the date. Devon's jealous little sister Nadine tries to keep them from dating.
When Raven has a vision of Cory getting no valentine she tries to give him tips but they don't work, so Eddie teaches him to rap to get a boost of confidence. Meanwhile, Chelsea has to have her new boyfriend approved by Tanya and Victor since her parents are away and Raven tries to mail a giant Valentines card to Devon.
Raven gets invited to a convention for Devon's favorite show, "Astro Force Five". Raven doesn't want to go, but when she has a vision of Devon nuzzling with another girl, she and Chelsea crash the convention -- in disguise, of course. Eddie also crashes the convention, but he intends to meet a female star on the show whom he has a crush on. As it turns out, nuzzling is just the traditional greeting on "Astro Force Five". Meanwhile, Cory has a new money scheme -- pretending to read the minds of animals.
Raven has a vision of herself modeling a dress that she designed. She is accepted into the fashion industry modeling her clothes. But when it appears in the magazine, her body has been altered, and she appears much thinner than she really is. She is upset that her own body was not used, and also that the head of the agency only believes that there is only one look for all models. In the end Raven learns that it's what's on the inside that counts not the outside. Meanwhile, Cory tries to convince his parents that he should get a new video game system.
Raven must get a good grade on a science project, or else she'll be grounded and she'll have to miss going to the Blue Rain concert with Devon. When Victor gets a new paper shredder, he becomes totally obsessed with it. Meanwhile, Cory's intelligent friend William needs a makeover. Raven makes a deal with William, to trade projects. William does his share of the deal, but Raven had forgotten about her part. When William and Cory get mad, they shred the project, which Raven had to fix up a night. Asleep from lack of sleep, she groggily and mistakenly tells Victor that her paper is trash. He shreds the paper and Raven gets mad. Then by accident at school, she ends up creating an unstable chemical reaction in the science lab, which causes Raven and Victor (who had come to bring Raven her formula project paper) to get covered in some sort of blue substance that will not wash off for a few days. Raven's grounded until her grades improve and Devon comes over to cheer her up. Meanwhile, Cory meets a girl named Madison, but she does not like William, and Tanya asks Cory if he wants to be with one who hates his best friend. In the end, Cory chooses William over Madison.
Raven and her mother spend a day at a health spa, but all Raven really wants to do is meet her favorite singer, Miesha. Things go from bad to worse when Miesha's dog jumps into Raven's bag, and Miesha thinks Raven "dog-napped" it and Raven is grounded and trouble by her mother Tayna for accidentally steals one of Miesha's dog named Truffles.
Raven finds out that she can read minds after suffering "a psychic cold". Meanwhile, Victor's posh mother, who is unaware that Raven is psychic, comes to town, and wants her granddaughter, Raven, to join her "White Glove Society" as a junior member. However, things go horribly wrong when Cory's pet rat, Lionel, "interrupts" the meeting. This causes the ladies to scream and panic. In the end, Raven admits her secret to her grandmother, and she accepts her secret, like how she should have accepted Tanya's mother.
Raven has a vision that Devon gives her a wedding ring, only for her hopes to be dashed when that ring actually belongs to his father and bride for an upcoming wedding and he is his father's best man. Even worse, Devon and his family are moving to Seattle right after the wedding. Having learned this, Raven tries to stop the wedding by impersonating the bride. Devon then stops Raven and they confess their love for each other and kiss one final time before the wedding. Meanwhile, Cory gives Victor and Tanya a motion-activated singing chicken named Clucky as their anniversary gift, which quickly becomes annoying.
When Eddie hosts a radio show at school, with Raven as a guest/co-host, Raven and Eddie clash over hosting duties. Things go terribly wrong when Raven makes Eddie mad, and he quits. Raven embarrasses herself on the radio show, and does not know how to operate the machines. In the end, Eddie forgives Raven, and she gives Eddie back his hosting duties.
Eddie steals the opposing school's goat mascot, but Chelsea feels sorry for the goat, and "mothers" it. Meanwhile, Cory plays a video game against a girl in Hong Kong, Jing Yee. She seems to be a very skilled player, as she beat Cory with one ship left.
A comet flies over San Francisco, giving Eddie the same psychic powers as Raven, only that he can have a vision whenever he makes the vision face. Unfortunately, the popularity goes to his head, and then gets him into trouble when he falsely predicts a racehorse for an old friend to gamble on.
Chelsea invites Raven on the Environmental Club's camping trip. Raven, not enjoying the outdoors, brings along portable gadgets and a luxurious tent. This leads to an argument between Raven and Chelsea, which makes Chelsea think that she and Raven shouldn't be friends.
Raven and Chelsea go on a TV dating game show called Termi-Date for a chance to date a cute guy named Chad. Raven then has a vision that she'll turn on Chelsea, and call her "a loser". Even though they both said nice things to each other, the director of the show tampered the video tape by taking out the nice bits, and made it sound like it was horribly mean. That's when Raven and Chelsea argue but later reconcile when Eddie plays the nice version thus exposing director's scheme. Meanwhile, Cory lies about a babysitter being with him, so that he can have the house to himself. Cory is happy at first, until he sees a late-night horror movie called Eye of the Zombie 2, and he becomes scared.
After Raven has a vision about a representative from her favorite show, "Undercover Superstar", posing as a janitor at her school, the entire student body seeks to impress him with their performances, only to discover he works for the health department. Refusing to perform again for another "janitor", Raven misses the opportunity to impress a real talent scout, Paula Abdul.
It's Career Day, and Raven is assigned to be a teacher's aide -- in Cory's classroom. When they arrive home fighting and disheveled, they both offer an outlandish tale about what happened in the classroom that day. Raven insists that she was the picture of perfection, and Cory was obnoxious; while Cory's story describes Raven as a witch-like character, who tormented the children. In the end, Larry, Cory's classmate and friend, reveals that "it was all an accident". Meanwhile Chelsea is assigned to work at the police station under Detective Ramirez and Eddie to a sofa warehouse.
Cory has to go to the dentist. He is terrified, so Raven goes with him to calm his fears. When they get there, Raven sits in the dentist's chair to show Cory that there is nothing to be scared of - until the dentist tells her that she has a cavity. Suddenly scared, the two of them try to run, ending up with Raven posing as "Dr. Thinkenfast" ("Thinking fast"), and Cory as "Dr. Doasisay" ("Do as I say"). Meanwhile, Victor; Chelsea; and Eddie are working on a Chill Grill advertisement video, but struggle over creative control.
Raven and Chelsea get waitress jobs at The Chill Grill to raise money to go on a ski trip. They chat with customers, and ignore their duties, so Victor fires them. They persuade him to give them another chance, and try to plan a big party for the restaurant that night. Unfortunately, they both plan a separate party, along with one already booked, leading to three bashes on the same night.
Alana and her crew get on Raven's last nerve, causing her to overreact in class and flunk a test. In order to avoid being suspended, she must make peace with Alana. To do so, she invites Alana over to a slumber party. But when she has a vision of an earthquake, things get pretty weird.
Meanwhile, Victor gives Eddie driving lessons, which don't go too well when an officer pulls them over.