Aang, Katara, Toph, and Sokka celebrate their first Love Feast with their friends, the singing nomads, with whom they, excluding Toph, journeyed through the Cave of Two Lovers. After drinking a special berry juice called Love Potion #8, they all openly express their true feelings for each other. Of course, when they blame it all on the crazy love potion, they learn that their nomad friends had more than one trick up their sleeves.
This marks the first time that Toph showed romantic feelings for someone who had a mutual attraction toward her. It was also the second time she kissed someone in the series, the first being Suki in "The Serpent's Pass", albeit accidentally.
Katara and Aang's dance almost mirrors the one they performed the episode "The Headband".