Ricardo fears Gabi might reveal where he was on the night Paula was kidnapped. Eddie and Gregory retell the story of the night Del was murdered. The both confess that they didn't kill the man, and Eddie explains how he found Del mortally wounded, and how he did everything that Gregory wanted him to do, starting with taking a briefcase and planting a gun in Annie's apartment. Rae's ex-fiancée Wei-Lee Young arrives. Casey avoids talking about his mother. Annie listens as Ben and Meg talk about Annie's irresponsible behavior. Ben refuses to give any info on Annie to Gregory. Eddie realizes his briefcase is missing. Meanwhile, Mark gives the briefcase to Meg, who takes it to Ben's office.

Rae wants to get back with Casey as she remembers what happened between them the night before. Paula warns Casey to watch out for Wei-Lee, because he may do something to make Rae go away. Vanessa wants to know the truth from Michael, but he can't confess who is the woman she saw him with. Finally, Michael takes her to the secret woman and introduces Virginia and James, her son. Eddie and Gregory are fighting over a videotape. Gregory wants Eddie to find the briefcase. Olivia warns Tiffany to stop looking for money and she whispers about Del. Olivia later tells her that she didn't kill Del. Bette wants Annie to return home, but she refuses. Gregory shows up at her house.

Rae wants to get back with Casey as she remembers what happened between them the night before. Paula warns Casey to watch out for Wei-Lee, because he may do something to make Rae go away. Vanessa wants to know the truth from Michael, but he can't confess who is the woman she saw him with. Finally, Michael takes her to the secret woman and introduces Virginia and James, her son. Eddie and Gregory are fighting over a videotape. Gregory wants Eddie to find the briefcase. Olivia warns Tiffany to stop looking for money and she whispers about Del. Olivia later tells her that she didn't kill Del. Bette wants Annie to return home, but she refuses. Gregory shows up at her house.

Ricardo and Paula want to go back at planning their wedding, but Paula is still haunted by flashes of her raping. Gabi wants to talk to Paula about something important. Annie tells Ben everything she knows about the briefcase. After they open the briefcase, Annie tells Ben that Eddie killed her father. In the meantime, Eddie finds Mark's lost-and-found note and a briefcase is on the list, so he runs to get it. Elaine questions Cole about his mother and he tells her that she abandoned him in the hospital on the day he was born. Olivia and Bette remember what they did... 20 years ago Del kidnapped Elaine's son and Olivia & Bette told Elaine that her baby is dead. Cole makes a very mysterious call to an unknown person and he says a name of the key... "Olivia."

After drinking too much, Olivia is worried that Gregory will send her away to a clinic. Caitlin asks Gregory to not send her anywhere and he promises her that he won't. Gregory tells Olivia he can't forgive her after she slept with Del. Olivia is convinced that what she did years ago is way worse, and she can't forgive herself for it. Caitlin and Cole meet on the beach. Ricardo asks Elaine to give him her blessing to marry Paula which she does. Gabi apologizes to Ricardo, and reveals to Paula that they're half sisters. Eddie holds Meg at his gunpoint.

Caitlin is afraid that Cole is having an affair with another woman. Olivia wants to know about Cole's origin, but he doesn't say anything. Cole is frightened to see Caitlin's picture in the cabinet. Later, Caitlin cries on Olivia's shoulder about her love life. Paula wants Gabi to move in with her and Ricardo. Ben gives Eddie the briefcase and runs away, but Annie stops him, steals the briefcase and then he tries to catch her. Eddie holds Ben on gunpoint, so Annie has to hand the briefcase to him. Eddie runs away. Annie later reveals that she replaced the jewels with sand.

Caitlin and Olivia bond as the talk about their love lives. Cole tells Tim that he isn't having an affair. Gabi and Ricardo agree to forget about what happened in the past. While Gabi undresses herself, Ricardo comes to help her because she accidentally gets caught to a camper bed, and Paula catches them. Paula jokes about Gabi making a move on Ricardo. Meg and Ben connect and share a few good moments together, but Annie comes bursting in their room and tells that she wants to be Meg's company for the night. Annie dreams of Ben being in love with her. Eddie arrives in Switzerland in a new wardrobe and starts celebrating his success.

Casey offers himself to show Wei-Lee how to surf, but Wei-Lee soon shows that he already knows it. Later on, Wei-Lee suggests to make a party for Casey & Rae's wedding and they agree, reluctantly. Paula wants to introduce Gabi to Elaine as her sister. Gabi tells Paula that she feels guilty for her kidnapping. Ben hints to Ricardo that Annie may be alive to see his reaction. When Ben returns back home he tells Annie to leave Sunset Beach and she won't go unless he comes with her. Annie confesses to him that she loves him, but he loves her only as a friend. Ricardo discovers that Eddie is in Switzerland. Meanwhile, Eddie finds out that the briefcase is full of sand and crashes it. There he finds a birth certificate for Elaine's baby. He wonders what does Del has to do with Elaine's baby.

Vanessa interrupts Michael as he's getting ready to tell Virginia and Jimmy the truth about killing James Harrison. Caitlin tries to talk to Cole about his other woman, but he convinces her that he only has eyes for Caitlin. Bette and Olivia both agree that it's the right time to tell Elaine the truth about her son. When they meet near Elaine's Waffle Shop, Cole tells Olivia that they can't be together anymore. Vanessa wants to show Michael hoe much she likes him, but he tells her to go away, because he needs to pay for his sins. Gabi tells Ricardo that she applied for a job at the SBPD. When she finds out she got the job, she decides to move out from Paula and Ricardo's apartment to give them their privacy.

Meg and Ben decide to attend Casey and Rae's party together. Ben describes Annie as a selfish person, and then warns her to stay away from Meg. Wei-Lee watches suspiciously as Casey asks Rae to finally reveal the truth. Annie catches Eddie in Ben's apartment, in a wig and a dress. Tiffany and Olivia have a face-off. Gregory realizes that there is a dog in the house and calls the animal control.

Sean convinces Gregory to let Tiffany stay at their place. He passes out, but Gregory believes he's faking it. Tiffany is troubled by flashes of being abused. Eddie convinces Annie that he didn't kill Del. Gabi watches Ricardo talking to an ex-girlfriend. Paula finds Elaine's name on the list of 0.38 caliber gun owners. She goes to the hotel where Del was murdered and questions a service man about the woman who left Del's room on the same night he was killed. Annie watches as Meg and Ben kiss passionately. Wei-Lee tells Rae that he already knew that her marriage to Casey was only a scam. A troubled Michael leaves the party early.

Gregory realizes that Sean is not faking his fall and he Sean is quickly transported to the hospital. Gregory blames Tiffany for everything that happened to Sean. Meanwhile, Ben is troubled by memories of his ex-wife Maria, so he keeps on pushing Meg away. Eddie comes to Ben's apartment by Annie's call and starts looking for the missing jewels. Ricardo is still troubled by the fact that he was with Gabi on the night Paula was kidnapped. Elaine lies to Paula that she never saw Del the night he was murdered. Gregory wants to transfer Sean to another hospital and threatens to a malpractice when Rae tells him that's not the best idea.

Ben tells Meg that he doesn't want to hurt her. Tim finds out that Ben still doesn't know that Meg is actually Dorothy. While Rae is fighting for Sean's life, Gregory is occupied by threatening the hospital, so Olivia has to sign the papers instead of him. The equipment from another resource is brought in. Wei-Lee tells Rae that he is leaving to San Francisco, and then he promises that Rae won't stick around in Sunset Beach for much longer. Elaine receives an anonymous call from a person that knows what she's done. She goes to the graveyard and Eddie follows her. There, she confesses that she murdered Del.

Casey saves Michael's life when he tries surfing in a riptide. Vanessa blames herself for destroying Michael's life again by bringing Jo-Jo in their lives. Michael is reluctant, and tells her that he doesn't want to tell Jimmy & Virginia that he murdered Jimmy's father. However, Virginia & Jimmy walk into the room and find out the truth after which Jimmy, obviously, runs away terrified. Virginia confesses that she already knew that Michael killed her husband years ago, but she forgave Michael. Olivia is crushed to find out what could Sean's surgery do to him. Tiffany shows Sean his charts and he decides to not go through with the operation.

Gregory and Olivia are in panic after they find out that Sean ran away, who is on the beach with Tiffany. Jimmy has been caught shoplifting and Michael talks to him, but Jimmy seems to not care about what Michael has to say at all. Bette believes that the person who stole the briefcase is probably Del's killer. Paula finds out that Elaine is selling the Waffle Shop. She takes a sample of Elaine's hair from her hairbrush and wants to compare it from the hair found in Del's hotel room.

Paula finds out that the hair sample matches the hair found in Del's room. Ricardo is terrified to be left alone with Gabi. Eddie searches for evidence that Elaine is Del's murderer. Elaine finds out Cole's birthday is on the same day as her son's. Tiffany convinces Sean to go through with the operation. Gregory repeats that Tiffany is guilty for everything that Sean had done. Rae is surprised when her ex-teacher, Dr. Moulton, is surprised that she is wasting her medical talent on nothing. After Meg leaves, Annie Annie sips a pill into Ben's vine.

Meg is shocked when she finds Annie and Ben together in the bed. Annie just tells him that he shouldn't mix sleeping pills with wine. Sean's operation seems to be going well, until an obstacle appears and Rae has to inform Gregory and Olivia. Eddie finds the test sample proving that Elaine is Del's murderer. Ricardo realizes that Eddie was in the office. Elaine digs up her son's grave and is shocked to find out that her son is still alive. Paula follows her and confronts her.

Elaine explains to Paula that Cole is her son, because of the birthday on the same day. She explains how Del used to brag about killing her son and that she didn't have time to think about it, but just took the gun and shot him. Paula promises to protect her, as Ricardo walks into the room. Ben wants to know what Meg saw in his apartment. Eddie leaves a message for Ricardo telling him that he knows who is the murderer. Mark almost confesses that he is guilty for Sean's illness. When Cole asks her to run away with him, Caitlin tells him it would be better to build a new life together in Sunset Beach.

Ricardo meets up with Eddie who wants immunity in exchange for the news he has. Eddie then finally tells him that Olivia is Del's murderer. Elaine, Olivia and Bette meet at the graveyard, where Elaine tells them that she knows the truth and that she would kill Del if he wouldn't be dead already. A police officer realizes that the hair sample is missing. Elaine wonders if she should tell Cole the truth. Rae wonders why Casey can't understand how hard it's for her to decide between him and Wei-Lee. Casey and Rae kiss, and Wei-Lee sees them.

Wei-Lee is interrupted while trying to tell Rae about his surprise. When he reveals that it's an amazing job opportunity in San Francisco, she is reluctant to either take or reject it. Meg tries to reassure Casey that Rae isn't going anywhere. Virginia asks Michael to stay in her life because Jimmy needs him. Vanessa witnesses a close moment between the two. Gregory offers money to Tiffany to leave Sean, but she tears it up. Caitlin is shocked to hear what her father did when he tells her that he removed Cole from Sunset Beach. Elaine decides not to tell Cole that she is his mother. Cole decides to tell the truth to Caitlin.

After making up, Caitlin decides to make love to Cole in the cave. Ricardo questions Ben about everything he knows regarding the Deschanel jewels. Tim informs Ben that he knows that Annie is alive, and then warns him not to hurt Meg, or he'll have to deal with him. Meg confronts Annie with sleeping pills she saw at Ben's place, but Annie makes up a silly story about Ben going mad if Meg brings them up. Vanessa and Michael go out on a date.

Gregory apologizes to Olivia and they make up. Olivia is surprised to realize Cole is in Sunset Beach. Caitlin confronts her father. Paula is worried that someone might realize her mother killed Del. Ricardo and Elaine discuss about her son. Ben and Meg end up locked in the vine cellar, where Ben finally realizes that Meg is actually Dorothy.

Ricardo decides to give Eddie full immunity for all the information he can provide. Then Eddie gives him the hair samples and the birth certificate that was in Del's briefcase. Meg finally confesses that she is Dorothy and that she knew about Ben being SB for a while. Caitlin wants Gregory to accept Tiffany as a part of the family, which he reluctantly agrees to. Sean fells weird seeing Gregory trying to make nice in front of Tiffany. Gregory even suggests a family vacation, but Sean refuses the offer. While waiting for Olivia at the grotto, Cole meets Caitlin and they kiss when Olivia arrives. Olivia is shocked to find out that her she was having an affair with her daughter's boyfriend. In the meantime, after he can't read a note, Tiffany realizes that Sean has sight problems.

Ricardo isn't being himself while trying to solve the murder mystery. Paula believes Ricardo is acting strange because he feels guilt over Annie's death, but he's actually being down about himself because he feels like a bad police detective. Sean wants Tiffany to keep quit about his health problem. Meg and Ben continue sharing experiences while being locked in the vine cellar. A surprised Olivia talks to Caitlin about her boyfriend. Meg and Ben fall asleep in the cellar. Suddenly, Ben starts talking about Maria and strangling Meg. Ricardo arrives at Elaine's Waffle Shop, where she's waiting for him.

Elaine confesses to murdering Del Douglas because she was still under the impression of what Del did to her baby years ago, and Paula interrupts her conversation with Ricardo. Ricardo is then surprised to realize that Paula already knew about her mother's crime. Eddie tells Annie that Del's murderer will be revealed tommorow. Meg awakens Ben and he apologizes for trying to strangle her. Ben tells Meg all about his ex-wife and how he couldn't save her from her drowning. Meg convinces him that he is not a murderer and they fall asleep on each others arms. Gregory finds an unhappy Olivia on the beach. They return home and have a heart-to-heart. Annie finds Meg and Ben together in the cellar.