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.

Mark is charged with attempted murder and arson; Alexis tells Blake and the police his motive was revenge. The other suspects-McVane, Hess and Adam, are questioned and released. After Alexis destroys Fallon's relationship with Mark, Krystle suggests she is seeking revenge because Mark rejected her. Kirby breaks down and tells Krystle her baby is not Jeff's; an unknown man in surgical garb tries to smother Alexis. Blake and Jeff receive a frantic call from Joseph, who is muttering incoherently. At the bungalow where Kirby was born, Blake and Jeff find the disturbed butler with a gun. Before they can stop him. Joseph pulls the trigger and kills himself.

Jason imposes a one-week deadline for Blake to decide on the pipeline proposition. Claudia heads to San Francisco to think about her relationship with Adam. Alexis turns to both Blake and Jason for help in rescuing King Galen. While riding with Miles, Fallon is surprised to learn she is an excellent horsewoman. Under the guise of a business trip, Adam tracks down Claudia for a romantic reunion in San Francisco. In Los Angeles, Constance Colby stuns Jeff--and enrages Jason--by awarding her nephew 50% of Colby Enterprises, worth over $500 million. When Krystle makes a surprise visit to Sammy Jo's apartment, Rita, who now appears to be Krystle's double following plastic surgery, hides in the bedroom. Jonathan Lake of the State Department tells Dominique they've met before--when she saved his life in Paris.