Blake invites Matthew and Walter to a dinner party. It goes badly. Fallon teaches Krystle how the rich do things. Jeff and Fallon skinny dip in the swimming pool.

Steven's ex-boyfriend Ted comes to town; a co-worker finds out. Fallon and Jeff elope; but to Fallon the marriage is a business deal.

Krystle meets Alexis. Claudia attempts suicide. Andrew informs Alexis that Blake cut Steven out of his will. Blake is forced to visit his probation officer.

Alexis makes a shocking revelation to Cecil. Krystle visits her house guest, Claudia. Steven has a serious accident.

The baby is recovered from the real kidnapper, Alfred Grimes, and it turns out he's the father of Roger Grimes. Fallon fires Susan. Claudia leaves for a sanitarium. Fallon starts looking for a job. Blake gives her his hotel La Mirada. She and Michael meet, but without knowing they may be brother and sister.

Cecil leaves his estate and Colbyco to Jeff and Alexis. He also reveals his "Rhinewood" game to Blake at the reading of his will. Blake suspects Alexis of being a part of it. Adam finds Alexis and shows her the silver rattle he had when he was kidnapped and she believes him.

Alexis recieves a note from the late Joseph--he set the fire with the intention of killing her; Claudia is released from the sanitarium; Steven and Blake fight over little Danny.

Kirby physically attacks Alexis, demanding to know the reason Joseph wanted her dead; at the trial for custody of little Danny, Alexis testifies against Bake, who erupts in anger.

To secure financing for his bankrupt company, Blake arranges to see Billy Waite, a notoriously underhanded oil man. Jeff continues his search for Fallon. Impatient with the progress her lawyer is making on her defense, Alexis fires Warren Ballard and retains Adam. Alexis visits Billy Waite in South America under the guise of concern about Blake's misfortunes. As she prepares to leave, the police arrive. She is arrested for fleeing to avoid prosecution and led away by the police.

In Seattle, Jeff and Blake learn the woman who died in the plane crash with Peter DeVilbis cannot be positively identified, but the ring she was wearing is indeed Fallon's wedding band. Back in Denver, Fallon's moving funeral is held. A deeply upset Alexis is given leave from prison to attend the funeral, and a tormented Jeff ends up creating a scene. Steven meets Sammy Jo in Los Angeles, where she demands payment of $30,000 per month for Danny's return. After Claudia points out his behavior only isolates him from the family, Adam is moved to action. Adam breaks into ...

Dex orchestrates a dramatic rescue in Moldavia; Jeff discovers a clue to Fallon's wherabouts; Little Blake realizes Rita is not Krystle; Dominique places a mysterious overseas call.

Rita fears detection when Blake schedules an appointment for her with his doctor; Galen continues his scheming to regain the throne; Michael solely decides that he and Amanda will start a family.