Angela's scheme to regain control of Falcon Crest falls through when she assumes Chase and Richard will be bankrupt after a competitor wins the Helios bid. However, she is unaware that Cassandra Wilder holds the liens on their shares. Cassandra's mother, Anna Rossini, has come for long-awaited vengeance against Angela, now that her daughter owns two-thirds of Falcon Crest. At the winery, Connie offers to make Chase a partner in Giannini Winery. Maggie walks in and catches them in a celebratory embrace. Enraged, she announces she will be moving out that evening. Angela testifies on Melissa's behalf, which gives her a lenient sentence of 60 days in jail, in return for the Agretti harvest. As Lorraine's condition deteriorates rapidly due to brain damage, Lance must sign the release to remove her from life-support systems. As Maggie and Richard comfort each other that evening, an explosion rips through his house, trapping them.

Melissa's desperate attempts to keep the baby result in a car chase that ends when the car carrying her, Chase, Maggie, Richard and Dan plunges into San Francisco Bay. Angela discovers that her child, whom she previously believed to have died in childbirth, is alive and ready to return to haunt her. When Angela and Peter reconcile and she tries to buy Peter's freedom, Peter, facing murder charges, flees with Kit.

Due to his past manipulations of Melissa's life, Lance's attempt to win control of The New Globe backfires. Richard overcomes Lance's ploy to control The New Globe by producing the man who framed Melissa, who demands that Lance move out. Emma brings Karlotti home to trace Wayne's spirit and begins to transfer her affections to the medium. Angela begins to believe that Lance framed her. Kit is reluctant to leave Tony for Guy and his plans of a fake suicide. Dan is able to break through Vicky's defenses. Maggie observes Chase's victory kiss from Gwen and has complications with her pregnancy.

In the aftermath of the earthquake, aftershocks rock the region and the people of the Tuscany Valley struggle to cope with the loss of property and loved ones. Father Bob transforms his church into a field hospital for the earthquake victims and as an information center for concerned friends and relatives. As the death toll mounts in the valley, Maggie and Cole wait in a San Francisco hospital for the doctor's prognosis of Chase's gunshot wound.

When Skyler's disappearance and apparent suicide casts a pall over the mansion, Peter blames himself for not recognizing her distress. Peter's guilt drives him away, but Skyler's tragedy makes Emma finally realize that Dwayne is gone forever, and Angela is at last able to comfort her daughter. Tony learns the truth about Skyler (Kit). When Richard's son is kidnapped, he feels lost. Chase faces the fact that, of the two people in the valley he most despises, Richard and Angela, one is taking flowers to his wife and the other is trying to get closer to his daughter. Lance calls for his father's help when Melissa has a nervous breakdown.

While Chase buries himself in his business deals and his political campaign, Maggie agonizes over the problems of her children, but mostly about her baby. While Cole takes his unhappiness out on his family, Vicky grows closer to Dan Fixx. With her paternity tests inconclusive, Maggie's fears increase along with her determination. Chase and Tony discover that their vines are withering. Angela and Lance fight over his association with The Globe and her obsession with Dan Fixx. Meredith starts her seduction of Richard Channing. Lance conspires with Karlotti to take over Emma's stock certificates in The New Globe. A hit man sees through Kit's disguise.

Melissa, enraged over being written out of Angela's will, solicits Joel's help by offering him $50,000 to discredit Lance in Angela's eyes. Joel tricks Lance into meeting him privately and locks him in a deserted warehouse. Disguising himself as Lance, he uses Lance's Porsche to drive Angela off the road. As the real Lance is released from the warehouse, he is promptly arrested for the attempted murder of Angela Channing. Angela reveals her plan to Reardon to ally with Richard in order to get Chase to cease his champagne operation. Gustav orders Spheeris to follow Chase and Ben to Paris, where they are searching for clues to Johann Riebmann's whereabouts. When Ben and Chase are trapped in a set-up, Ben is killed. At Richard's racetrack, Charlotte begins to lose control over her gambling impulses.

Angela's kidnapping brings her face to face with Julia at Riebmann's house, while Chase, Richard and Greg plan a mission to save her. They play into Riebmann's hands, gain control of the guards at his house and escape. Richard follows Riebmann into the old mineshaft where the treasure has been buried. As the mine begins to collapse, Chase, Pamela and Chao-Li stand by in horror. Richard manages to escape, but Gustav and Renee are buried with the treasure. Lorraine reveals to Lance that she is planning an abortion procedure to avoid further complicating his life, but Lance adamantly opposes the idea. Father Bob provides disappointing news for Melissa and Cole when he mentions that the annulment of her marriage to Lance could take up to two years. They decide to plan for a civil ceremony the following week.

In the hospital, Lorraine, depressed, misses Lance and laments her lost baby. In his jail cell, Lance reveals to Angela his fears about Lorraine's survival. Angela reassures him and promises that Greg is working on freeing him. At The New Globe, Pamela hands Maggie a cassette, explaining that Richard had taped all his conversations, and she had decided to validate his mistrust in her. When Maggie and Greg play the tape, they hear Richard and Judge Holder plot against Lance. Melissa breaks the news to Cole that she hired Joel McCarthy to frame Lance. Cole strikes back by informing her that her surrogate mother idea worked because Robin is pregnant. Due to the overwhelming evidence against him, Judge Holder is forced to release Lance. Ecstatic, Lance rushes to the hospital, where a judge marries him and Lorraine.

When Chase and Cole locate the cabin where Jeff is holding Maggie, they interrupt Maggie's escape attempt, which backfires on Chase. Angela interrupts Emma and Dwayne's elopement with the promise of a proper wedding at Falcon Crest. Emma's advice to Li-Ying changes her mind about staying in America, even after her prediction of an earthquake in the Tuscany Valley proves accurate. Angela sends Lance to break up the Melissa-Eric alliance. Jordan files for a new trial for Julia, while her own problems lead to her arrest.

After Chase is shot, he begins to hemorrhage and is wheeled into surgery. Angela and Lance close down the winery and break Eric and Melissa's alliance by forging Melissa's signature. After Greg and Harriet Roberts bail Jordan out of jail, they discover that Jordan's split personality, Monica, is in control. Dr. Kramer and Harriet help Jordan face the personality behind which she has hidden all her suffering. In his search for Cassandra, Richard arrives at her grave in England. According to Wilkins, Cassandra died while giving birth and Damon Rossini disappeared with her baby boy. Later, Sabrina Cross shows up with his son, Michael. In the finale, an earthquake ripples through the Tuscany Valley, leaving many injured in its wake at Falcon Crest.

After Angela, who is annoyed at Lance's defection to Richard's New Globe, continues her patronage of Dan Fixx, Emma seeks guidance from a storefront psychic. Kit appeals to Richard for help from Fixx, giving Richard a weapon to use against Angela. Cole is disenchanted with his father's partnership with Tony as Maggie is unable to help her troubled son or herself mend their relationships with Chase. Angela provides Miss Jones' sister with the nanny job in Richard's house. Richard dumps waste near Chase and Tony's vineyard.

Peter threatens Angela and Roland Saunders as he tries to discover their connection to Kit Marlowe. Due to Angela's interest in Maggie's baby, Maggie concludes that she must give the baby up for adoption if the child is to lead a decent life. After Maggie refuses to allow Emma and Karlotti have her child, the two instead apply to adopt a child. While Angela plans Dan and Vickie's engagement party, she promises to give them a vineyard. Peter forces Tony to tell him about Kit. After Chase makes Gabrielle a proposition, he offers Lance a partnership with him and Tony. Angela plans to solve the mystery of Kit Marlowe.

When Kit comes to Tony's defense, the gesture proves worthless. Tony's trial proceeds as if D.A. Wilkinson had scripted it, until Kit arrives at the courtroom. After Chase uncovers evidence that Melissa had engineered the botched paternity test, he is too late to intercept her due to Angela's threats. Chao-Li loses face because Angela and Lance stay up all night to take care of him. After Chase and Maggie decide on a quick divorce, Richard sees his chance for happiness.

Chase's wealthy mother, Jacqueline Perrault (Special Guest Star Lana Turner), mysteriously returns to Falcon Crest. When Jacqueline warns Chase of Angela's treacherous nature and tries to persuade him to leave Falcon Crest, hatred erupts and Jacqueline argues with both Angela and Chase. However, through their conflict, the mother-and-son relationship is strengthened; Jacqueline is convinced that Chase will survive and prosper in the valley.

At the winery, Chase joins Connie and hugs her, announcing that he has received the loan necessary to bid with Angela. However, Connie's former suitor, Larry Michaelson, could threaten the bank deal. Cole realizes that Connie may be a threat of another kind. Greg hunts for Joel McCarthy and finds that he died at Camp Mary Jane of a drug overdose. He confronts Richard with his suspicions about Lance's framing, hoping he can force him to reveal his involvement. In Chinatown, Lance insists that Lorraine be included in Angela's plans to send him to Italy, and she makes the arrangements for them to meet at the boat. Pamela warns Angela that Richard and the police are on their way to Lance's hideout and Lance manages to escape. When Lorraine arrives and discovers that Lance is already gone, she rushes to the fire escape before her stepfather can detain her, and in a hurry, slips and plummets two stories to the street.

Maggie's determination to keep her baby, regardless of the consequences, further alienates her from her family. Cole is adamant about leading his life away from the family, and Maggie has no choice but to give him her blessing. Vicki goes to see Dan Fixx, whom her parents disapprove. Chase accepts his wife's views on her upcoming motherhood. Angela attends Karlotti's seance, which is instrumental in giving Lance control of Emma's holdings. Chase and Tony discover vineyards contaminated from the dumping at Tuscany Downs, with evidence pointing to Angela's conspiracy to ruin her rivals. Fixx confides in Vicky. Lance moves to take over The Globe.

At Angela's engagement party for them, Vicky and Dan set the tone of the party by trying to avoid it. After Kit demonstrates a need to tell Tony good-bye, both Richard and Peter confront Saunders. Maggie arrives looking for her baby, which she now knows is Chase's. After Emma confounds Angela by introducing her adopted son, one of the guests is found dead in the winery.

When Douglas is buried, Angela tries to keep Emma sedated to prevent her from testifying. Angela could lose Falcon Crest to Chase if his attorney can prove that Jason died under suspicious circumstances. When the coroner's inquest resumes, the D.A. mounts a circumstantial case that is easily rebutted by Philip when Emma is unable to testify. Defying her mother, Emma manages to escape from Falcon Crest and arrives to take the stand, confessing how she accidentally pushed Jason to his death while he fought with Turner Bates. The jury rules that Jason "died at the hands of another," thereby giving Chase control of Falcon Crest, but he magnanimously offers fifty percent of the vineyard to Angela. Though Angela detests the thought of sharing Falcon Crest with anyone, she has no choice and accepts. Another threat looms as Angela learns of Douglas's illegitimate son, Richard Channing, who has inherited fifty percent of The Globe.

Sheriff Robbins notifies Chase, Maggie and Cole that Sam Giannini has been murdered, apparently during a robbery. Lance uses his new power to exploit Sam's death in The Globe. Maggie starts work writing copy at Richard's new radio station. Stephanie, Richard's ex-wife, comes to town and enlightens her daughter about Richard's past behavior, warning her that he may try to use her too. Gustav offers Mary Giannini his condolences and threatens to kill her if she does not sell her property to him. Chase has obtained a copy of the F.A.A. report and is enraged that someone is lying to frame him. In Italy, after Francesca Gioberti faces disaster at her vineyards, she travels to Falcon Crest, surprising Angela and seeking assistance from her cousins.

Lance ardently resists Angela's orders to board the ship until he gets an answer to why Lorraine is not there. Telephoning Falcon Crest, Lance learns that Lorraine is in the hospital, where she lies in a coma. Risking everything, he speeds off in Angela's car to see her. Lance is recognized at the hospital, but gets a chance to see Lorraine and encourages her to keep fighting before two policemen take him away. Awakening from her coma the next day, Lorraine begs Richard to get Lance out of jail. On a tip from a Turf Club bartender, Greg digs up the proof needed to convict Melissa. He confronts her, insisting she turn herself in within 48 hours. Cole is once again kept in the dark as to his wife's dealings. He receives shocking news about his own past actions, however, when Melissa's cousin, Robin, arrives again at their doorstep.

When Chase tries to help Maggie regain her memory, she rebuffs his advances, reminding him that she doesn't remember him or their marriage. Peter Stavros asks Angela to marry him, but she can only think about saving Falcon Crest at the moment. As Father Christopher gets to know his family, Angela and Greg use him as proof that Anna had a motive to kill Dominic. Unnerved, Anna sneaks into Angela's bedroom and sets it ablaze. When Richard is shot at, he escapes injury because he wears a bulletproof vest. Jordan and Richard create a plan with Richard as the target that will draw out the assailant. Lance continues his reckless and despondent behavior.

As Maggie fights her loneliness, Chase struggles to save his vineyards, and Angela strives for her freedom. Vicky allows her parent's problems to affect her relationship with Dan Fixx. As Chase's marital problems reflect on his campaign for county supervisor, he and Maggie face the facts about their troubled marriage. Even though Peter is troubled over Angela's innocence or guilt, he loyally stands by her. Richard is determined to defeat Lance's attempt at a takeover of The New Globe as the specter of Miss Jones begins to haunt him. Kit succumbs to Tony's charm, but is terrorized by Stafford.

In his quest for land adjoining Falcon Crest, Gustav Riebmann approaches Sam Giannini and when he refuses to sell, Gustav has Spheeris pay Giannini a special visit that night. Richard acquires the radio station KRDC, promptly fires the entire staff and makes Frank Taggert the new general manager. Chase and Maggie travel to New York, trying to uncover her past. Joel gives Terry written proof that they are still married, and it takes another $10,000 check to keep him quiet. Lorraine Prescott, Richard's stepdaughter from a previous marriage, re-enters his life, which is news that leaves Pamela stunned. Angela believes Richard's fierce protectiveness of Lorraine may be the weakness she's been looking for in him. Julia appears to Emma again on the porch, asking for money, but insists that Angela mustn't know.

Angela is horrified when she learns that Francesca has evidence that she is Angela's half-sister and legal heir to one third of Falcon Crest. Angela then uses it to her advantage by making a deal with her to buy Francesca's third in order to control more of Falcon Crest than Chase. At Lucas Crosby's home, Julia tells him she is tired of running and being afraid someone will recognize her. However, when she goes to the police to turn herself in, they do not believe she is really Julia Cumson. Emma helps Chase obtain evidence that Buzz Whitehead was bribed into lying to the F.A.A. investigator, and Senator Silverlake was pressured into suspending Chase's license. Cole revives his love for Melissa, maintaining that they will have an open relationship, but Greg promises to destroy their relationship.