Blake gets a meeting with Logan Rhinewood set up. Steven goes to Hollywood and finds Sammy Jo modeling in a cheap studio. Blake and Cecil takes a blood test and it proves that Blake is Fallon's real father. Alexis and Cecil start flirting with each other. The last news about Matthew and Lindsay is that they are dead. When Claudia finds out, she blames Cecil and wants to shoot him. Krystle tries to stop her, and in their struggle, the gun goes off.

Elena confesses to Amanda that nothing happened in the bedroom with Prince Michael. Sammy Jo fits her roommate Rita with a blonde wig and has her practice duplicating Krystle's voice. Fallon has chosen a new name and heads for Denver. Dex is kidnapped by Yuri and his gang as Amanda and Michael recite their wedding vows. Dex breaks free from his captors and heads for the chapel, where terrorists have opened fire on the entire wedding party.

Blake's trial continues. Both Joseph, Claudia and Krystle have to testify. When Claudia testifies, she has to tell that she had an affair with Steven, and then Matthew finds out about it. He makes rebellion in the court room, attacks Blake and has to go to jail. Claudia packs her stuff, runs away, and takes Lindsay with her. On the way, they collide and get serious injuries. In the final scene, Jake Dunham calls in a new witness, and in walks a mysterious woman. It turns out to be Alexis Morrell Carrington - Blake's first wife.

Blake announces that his sight is back. Alexis sleeps with Cecil. Fallon and Nick are friends again and wants to be together as soon as the baby is born. Steven and Sammy Jo decides to leave the mansion. Fallon and Alexis throws a party for them. Sammy Jo gets drunk and embarrasses the Carringtons. Claudia and Jeff seems to be getting good along. Everything about Cecil being Fallon's father is out in the open between Alexis and Fallon. In the end, Alexis and Fallon has an accident with their car and Fallon is left unconscious.

Fallon is brought to the hospital and gives birth to a boy. The baby is very weak and the chances for survival are small. Fallon is deeply depressed after finding out about Blake not being her father, and doesn't want to see nor Blake or Alexis. Claudia sleeps with Jeff and steals his key to the archive in Blake's Denver-Carrington. Krystle talks to the groundsman at the mansion and finds out about Alexis' shooting when she lost the baby. Alexis and Krystle have a real ""catfight"" in Alexis' studio. Alexis' detective, Morgan Hess finds out that Krystle is not legally divorced from her former husband, Mark Jennings. Sammy Jo leaves Steven.

When Blake learns Steven's attorney Chris has moved in with his son, he vows to fight for custody of little Danny. Morgan Hess, Alexis' private investigator asks his employer for a large sum of money to payoff a gambling debt; when Alexis refuses, Hess leaves with a threat. Kirby realizes her baby was fathered by Adam. Fallon meets with Adam's former physician, Dr. Edwards, who tells her of Adam's temper and underlines his brilliance: He once won a case by proving a plant worker was poisoned and driven insane by chemical fumes. Realizing the connection to Jeff's illness, Fallon asks the hospital to investigate. Alexis tricks Krystle into meeting her at Steven's cabin, where she offers her $1 million to leave Blake. Outraged, Krystle rises to leave, but the door will not open--someone has bolted it shut from the outside, and smoke is pouring in from under the door........

To raise the needed money, Blake sells his assets and mortgages the mansion. In a heated confrontation with Alexis, Tracy quits. Tracy tells Alexis of her ongoing affair with Dex. Alexis is again questioned by the police, who want the details of her affair with Mark. Fallon suffers another painful headache. Sammy Jo informs Steven she intends to stay in Denver and take custody of Danny. An unknown, beautiful woman, Dominique Devereaux, sweeps into La Mirage demanding the finest accommodations. When she attempts to question Fallon about Alexis, Fallon grows suspicious.

Blake tells Alexis that Charles Matthews knew about Fallon's childhood nightmare. Matthews also knew that Blake's father, Tom Carrington, covered up the incident. Alexis blackmails Blake for half of the plundered Nazi treasure. Jeff and Dex enlist Zorelli's help to dig up information on Captain Handler. Fallon dreams of the lullaby she heard Krystina sing. She remembers the lullaby came from a music box that was part of the treasure. Fallon asks Krystina to show her where she found the music box. Alexis offers to give up her claim for half of the treasure, sparing Blake public scorn, if Sable withdraws her lawsuit against Colbyco. Sable agrees. Krystina leads Fallon into a secret tunnel passage and to the hidden treasure, unaware that Dennis Grimes has followed them. Handler meets with the mastermind behind the scheme to steal the treasure, but his identity is never revealed. Grimes takes Fallon and Krystina hostage inside the tunnel. Handler and several police officers raid Blake's ma

Fallon and Jeff's baby has a surgery and things are looking better. Jeff discovers Claudia's ""leak"" to Cecil. Matthew and Lindsay disappears without trace in the jungle. Blake finds out about all the ""father"" trouble. Alexis blackmails the groundsman to tell Krystle he was wrong about Alexis shooting the horse, though Krystle won't believe him. Fallon and Jeff argues about custody of their child.

Alexis prepares to have the wedding reception in Blake's garden. Rashid Ahmed's brother Farouk comes to Denver-Carrington to offer Blake a deal, but Blake turns it down. To get back at him, Farouk tells Nick that Blake is responsible for his brother's death. Steven leaves the mansion. Blake considers buying a big ranch and goes there with to look around. Blake goes alone for a ride in the mountains at the ranch. Nick follows him and starts accusing him for the brother's death. There's a big brawl, but they both calm down, and Nick leaves Blake alone. Blake's horse is then attacked by a snake. Blake gets thrown off and disappears down the hill. Nick watches Blake lying there unconscious, but leaves him. Little Blake disappears. Cecil has a heart attack when he's in bed with Alexis.

Blake is shocked when newspaper headlines announce Ben's acquisition of the South China Sea leases. Sure of Ben and Alexis' collusion, Blake greets the co-conspirators with copies of ""Sister Dearest,"" which he vengefully hands out to the hungry press. Claudia informs Blake that while ill, he gave Adam power of attorney to turn the Lankershim One oil well over to her. Disturbed that the well is nearly dry, Claudia becomes lost in a dreamlike past. Locking herself into a candlelit room, she accidentally sets the room ablaze. Sammy Jo and Amanda fight for Clay's affections during Dominique's engagement party. When a vicious struggle lands both women in the pool, Amanda holds a helpless Sammy Jo under water. Dominique's happiness is shattered when she learns that Garrett was never married before. After manipulating Ben into giving her one half of the leases, Alexis plots her ultimate revenge. Calling in her one billion dollar loan, Alexis renders a stunned Blake financially impotent. When

Blake is arrested for the murder of Ted, and a big trial comes up. The prosecutor is Jake Dunham, an old friend of Claudia and Matthew, who does not like Blake. Krystle hears about the trial and decides to come back to Blake to be with him, and then solve their problems later. Fallon is afraid and to help her father, and she lies in court. Steven tells the truth about what really happened, though.

Alexis testifies against Blake, and tells about an incident several years ago, when Blake discovered her in bed with her lover, Roger Grimes. Her testimony proves that Blake is a violent man, and things doesn't look too good. Fallon and Blake welcome Alexis with hate and rudeness, but Steven is friendly to her. Claudia wakes up in the hospital and discovers that Matthew has run off with Lindsay.

Fallon and Jeff's baby, Little-Blake Colby, is brought home. A nurse called Susan is hired to take care of him. Alexis accepts Cecil's proposal and they start making wedding plans. Claudia finally remembers exactly what happened the night she got injured. Rashid Ahmed wants to do more business with Blake.

Cecil leaves his estate and ColbyCo to Jeff and Alexis. He also reveals his ""Rhinewood-game"" in 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. Alexis believes him.

Alexis suffers recurring nightmares about Mark's death. Kirby again tries to kill Alexis. When she is unable to pull the trigger, Alexis offers to remain silent in exchange for Kirby's agreement to leave Adam. The truth behind the attempt to unhinge Claudia is revealed. Sammy Jo seduced Hess into handling it, and has returned to him now to solicit his help in regaining her child. In preparation for the wedding, Alexis and Krystle visit the same beauty salon. The two women exchange words, and a mud-slinging melee ensues. While dressing for the wedding, Fallon is gripped by a seizure. She drives off as the ceremony is about to take place. The police arrive and arrest Alexis for the murder of Mark Jennings.

Krystle regains consciousness and finds herself locked in the attic at Delta Rho Farms while Rita is impersonating her at the mansion. Dex is caught and tortured in Moldavia. A furious Blake learns Adam lied to him by canceling a business trip to marry Claudia. Blakecuts Adam out of his will. Claudia is upset to find Michael has been appointed chairman of La Mirage. The Colby family attends Blake's party to announce the formation of the Carrington-Colby pipeline. Blake, however, continues to question Jason's integrity. One-time lovers Dominique and Garrett Boydston, Jason's chief counsel, are reunited. From his bedroom window, Jeff spots Miles Colby arriving with Fallon.

Afraid that something may have happened to Dex, Alexis demands to be let into his room, only to find Amanda and Dex in bed together. Horror stricken, she vows to disown Amanda and storms from the room. Krystle confronts Alexis for initiating false rumors to a journalist regarding her captivity. Krystle overturns a table laden with food into a seething Alexis' lap. Galen assures Dex that he has lost Alexis forever and now she will be his queen. Alexis leaves for St. Thomas to get a divorce from Dex. Adam is dismayed to learn of Blake's plans to put Steven on the board of directors. While attending a party, Adam sees Bart Fallmont and Steven together and misinterprets it to mean something more. He immediately sets a conspiracy into motion to gather incriminating evidence against the senator. Garrett meets Jackie and after learning her age and the tragic story of having lost her father soon after her birth, Garrett suspects she might be his daughter. Back from St. Thomas, Alexis walks in

Convinced that someone is trying to frame him for Chisolm's murder, Blake turns to Charles Matthews for answers to his father's mysterious past. Matthews tells Blake a dark secret that leaves Blake in a daze. Zorelli finds a bug in his apartment, which Dennis Grimes, and Captain Handler planted. Jeff finds out that Adam was responsible for the story that accused him and Monica of being involved in an incestuous affair. Jeff confronts Adam and a serious brawl ensues. Walking in on the fight, while Sable and Monica watch, helplessly, Alexis uses the moment to announce that Jason Colby is not Monica's father. Outraged by Alexis' betrayal, Sable hurls herself atop of Alexis, pummeling her wildly. Adam tells Alexis that the painting Grimes gave her is a Fredrick Stahl. Putting the connection together, Alexis realizes Blake is hiding a treasure plundered by the Nazis. Sammy Jo tells Tanner that she loves him, leaving him torn between his vows and his love for her. Sable tells Dex that he is

The butler, Joseph Aynders, shows Krystle that he doesn't like her, and he means she doesn't belong in the Carrington family. Krystle understands that Blake is the one who bought the necklace, to show her that he had found out. They have a little argument about this, and Krystle decides that life with Blake is impossible and leaves him. Steven tells Claudia he spent the night with Ted, but now he wants to quit his relationship with both of them. Steven and Ted are just saying good-bye and hugging each other when Blake discovers it. He gets furious, because ""the gay"" is now standing there in his house with his arms on his son. He attacks Ted and there's a fight. Ted trips, hits his head, and dies.

After losing her baby due to the fall from her horse, Krystle learns she cannot have another child. Steven and Sammy Jo begin dating, but at his cabin, he finds he cannot make love to her. Jeff quits his Uncle Cecil's business and joins Denver-Carrington. Fallon continues her affair with Nick Toscanni. Steven professes his love to Claudia and asks her to marry him. She declines, stating she's still in love with her husband. Fallon interrupts Nick's visit to Krystle in the hospital and angrily assumes the worst, demanding to know if she is ""another page in his appointment book."" Blake's attorney, Andrew Laird, returns from Washington with news of more trouble with the Middle Eastern oil leases.

In order to save his football team and repay the $9 million to Cecil Colby, Blake flies to Las Vegas and obtains a loan from gangster Logan Rhinewood. Nick tells his sister that Blake is to blame for the death of their kid brother, who hanged himself in jail. He intends to find proof and claim vengeance. Sammy Jo has a nightmare and goes to Steven for comfort. In the morning, Alexis sees her leaving and promptly tells Krystle that the two spent the night together. When Alexis suggests that Steven, once again his father's heir, should consider marrying, he asks Claudia to give some thought to a future together. Fallon and Nick make love. While skeet shooting, Alexis spots a pregnant Krystle riding her horse. She fires, and the frightened animal throws Krystle to the ground. She is rushed to the hospital, in danger of losing the child.

After losing her baby due to the fall from her horse, Krystle learns she cannot have another child. Steven and Sammy Jo begin dating, but at his cabin, he finds he cannot make love to her. Jeff quits his Uncle Cecil's business and joins Denver-Carrington. Fallon continues her affair with Nick Toscanni. Steven professes his love to Claudia and asks her to marry him. She declines, stating she's still in love with her husband. Fallon interrupts Nick's visit to Krystle in the hospital and angrily assumes the worst, demanding to know if she is "another page in his appointment book." Blake's attorney, Andrew Laird, returns from Washington with news of more trouble with the Middle Eastern oil leases.

Krystle almost sleeps with Nick, but stops the whole thing. Nick says he's in love with her, and that he wants her, but she won't cheat on her husband. Blake comes home and tries to tell her the paparazzi photo is not what it looks like, but she won't believe him. Jeff is angry with Fallon because of her abortion plans and wants to divorce her. Fallon cancels the abortion. Steven and Sammy Jo get married, and Steven decides he's interested in car racing.

Steven and Sammy Jo return to the mansion and tell everybody except Blake that they are married. We get the impression that Sammy Jo only married Steven for his money. Alexis does everything she can to make Krystle think Blake had an affair in Rome. Nick tells Krystle he's deeply in love with her and persuades her to leave Blake. Ray Bonning, who represents Rhinewood starts interfering in the way Blake controls his team and wants to buy the whole of it. In the end, a car drives by Blake and Jeff and someone throws a bomb at them. They survive, but it leads to blindness for Blake.