Kristen Shepard (she shot J.R., you know) is in Los Angeles following the shooting of J.R. in Dallas. At a party, she is arrested for drug use and decides to call Gary and Valene for help. Valene rushes to the police station to get her released. Kristen manipulates Valene into letting her stay with them. Valene asks Kristen why she left Dallas. Kristen says she has her reasons. Kenny gives Kristen a job at his studio, which upsets Sylvie (are we jealous?). Kenny decided that it is time to end his relationship with Sylvie and concentrate on getting back with Ginger. But alas, Ginger is now going out with Carl Russelman. When Kenny finds this out, he sleeps with Kristen. Ginger comes back early for being with Carl and finds Kenny and Kristen together. Kristen then decided to leave Knots Landing (and good riddance) after Gary sees through her ""sweet"" act. Ginger serves Kenny with a divorce.

Diana is having difficulty with her new boyfriend as she feels a pressure to sleep with him. Karen, Diana, Val and Ginger are performing in an ERA benefit. Val asks Gary to help, but he's too preoccupied helping Earl Trent. Diana needs Karen's support but she is too busy rehearsing. In frustration, Diana pulls out of the ERA. Meanwhile with Laura preoccupied with work, Richard spends his time with Abby and they end up in the hot tub. Karen and Diana make up and sing, ""Put on a Happy Face"".

J.R. is in town for an oil convention. When Gary refuses to ask him for the money, Abby goes to J.R. for it and sleeps with him. J.R. says he knows that Abby has designs on Gary and that he'll only give Gary the money if he asks for it himself, so Abby keeps trying to persuade Gary. Val asks Gary not to get in any deals with J.R., and she and J.R. have a nasty confrontation. Roy and Frank continue to pressure Gary, so he finally goes to J.R., who gives him the $50,000.00. Kenny breaks up with Sylvie and wants to get back with Ginger, but she says no.