Kirby comes to stay with the Carringtons after breaking up with her fiancé in France. Joseph tries to persuade her to go back. Mark gets the job at Fallon's hotel. Blake tries to get help from congressman Neal McVane. Jeff and Adam has problems working together. Adam gets the hold of a toxic chemical mixture.

Fallon gets a letter from Steven and it turns out he's on an oil rig in Java Sea, Indonesia. Adam mixes the toxic compound in the paint for Jeff's new office. Fallon hires Kirby as a nanny for little Blake, and throws a big opening party for her hotel, which she now calls ""La Mirage"". In the party Alexis sleeps with McVane and tries to stop him from helping Blake, but Blake gets the upper hand. Mark tells Krystle about their unfinished marriage. Fallon and Mark dances and falls in the pool where they start kissing. Adam comes on to Kirby and she tries to get away from him. Jeff rescues her and they end up kissing.

Jeff starts being dizzy and affected by the painting in his office. Joseph tells Kirby to stay away from Jeff. Krystle goes to Acapulco to find out what really happened when they had they so-called divorce. Blake comes after her to be with her and support her. They finish the case, the divorce will be legal, and Blake and Krystle's marriage will be valid. The oil rig Steven works on explodes.

Krystle suspects Alexis knows the reason for Jeff's illness and tells Blake, who is busy obtaining an injunction to prevent his ex-wife from taking over his company. Jeff is discharged from the hospital; the poison in his body still not identified. Mark and Fallon return from Haiti, and Kirby observes them kissing passionately in the mansion's entryway. Kirby fantasizes making love with Jeff. In Singapore, Steven's secretiveness continues to arouse Dr. Chen's curiosity. Blake receives a call from Singapore and learns Steven may have been found.

As Blake is departing for Singapore to identify his son, Alexis intercepts him at the airport to assure him she will not be stopped from merging their respective companies. Despite Alexis' efforts, however, Blake is assured of Congressman McVane's help in stalling official approval of the move. Jeff tells Alexis he was mistaken in signing over his stock and wants to retract the action; Adam lures Kirby to a hotel and attacks her. Jeff arrives to rescue Kirby and in a passionate moment, asks her to marry him. In Singapore, Steven tells his father he has broken from the family and will not return to Denver...until Blake tells him he is father to an infant son at the Carrington mansion.

Upon hearing that Kirby has married Jeff, Joseph tells his daughter she has ruined her life. Blake suggests to Alexis they call a truce to their battle over Steven; Alexis offers Steven a share in Colbyco. Adam informs Fallon he doesn't consider Steven emotionally capable of handling the family business. After discussing the possibility of a reconciliation with Sammy Jo, Steven returns from New York alone. Blake disapproves of his son's plans to move out of the mansion with little Danny, but Krystle insists he let him go to prevent further alienation.

As the Board of Directors gathers to vote on the Denver-Carrington/Colbyco merger, Alexis pointedly tells the group that a nay vote will be met with immediate dismissal. The approval of the motion sends Blake into a fury. Kirby is upset to find Jeff and Fallon laughing together; Krystle comforts her, and also tries to patch up relations between Steven and Blake. Jeff accuses Adam of falsifying reports regarding Denver-Carrington; Alexis warns Fallon of Mark's history as a gigolo. Alexis learns Congressman McVane has managed to block the merger; outraged, she spills her knowledge of his scandalous past to the press.

Blake confronts Alexis with evidence of fraudulent figures involved in the recent merger; Alexis learns Blake's lucrative oil extraction process does not extend to Colbyco. Newlyweds Jeff and Kirby have their first fight; Steven visits Claudia at the High Meadow Sanitarium. Alexis offers Mark money to leave Fallon; he refuses. Later. Fallon finds her mother in Mark's bed, undressed. Krystle arranges a dinner to improve relations between Steven and Blake; Alexis interferes and sees that Steven is out of town, unable to attend. Blake insists his absence is due to hostility and Krystle, incensed at her husband's insensitivity, storms off.

A scandalous newspaper headline implicates Congressman McVane with a young girl in Washington; he realizes Alexis orchestrated his downfall. Kirby finds she is pregnant; Adam is alarmed to learn that his former physician, Dr. Billings, lS soon due in Denver for a convention. Krystle and Alexis argue over Fallon, and the discussion quickly disintegrates into a brawl: The two fall into the lily pond flailing and punching. Blake approaches and pulls them apart, likening the women to 'common mud wrestlers.' Humiliated, Krystle packs her bags and checks into La Mirage. Alexis demands Joseph drain the pond and retrieve the diamond earring she lost in the scuffle, and threatens to tell Kirby the truth about her mother if he does not cooperate. A ruined McVane appears in Alexis' office after hours and threatens to kill her.

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........

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.

Peter has made arrangements for the ransom to be delivered to Allegre's captors. Blake grows suspicious of his refusal to call in the police and is unhappy about Fallon's decision to marry him. Kirby suffers a second seizure. To save the baby's life, the doctors decide to operate. Congressman McVane attempts to enlist Mark's help in blackmailing Alexis. Claudia receives another box of violets from 'Lancelot.' Beset with guilt, Adam confesses to Blake that he, not Alexis, attempted to poison Jeff. As Blake struggles to understand, Kirby's doctor appears to report that Kirby is alive, but they were unable to save her baby girl.

With the family at the hospital waiting for Fallon to regain consciousness, Blake races to the airport to intercept Peter. Passing through security, DeYilbis sets off an alarm and the guards find a cache of drugs in his briefcase. Blake blocks his escape, and Peter is taken to jail. Blake is offered an important political post. McYane informs Alexis of the appointment. He is sure she will try to topple him and wants to be there when she does to blackmail her. Kirby accepts Adam's marriage proposal. Fallon regains consciousness and finds she is paralyzed.

As Blake confronts Alexis with his knowledge of her plot with Rashid Ahmed, Mark, on the balcony, listens with interest. Alexis is prepared to buy his silence. Blake travels to Hong Kong and learns Ahmed has left the country, leaving Denver-Carrington's money with the government. In Joseph's old bungalow, Kirby confronts Alexis, but her plan to kill her is foiled. After Mark successfully blackmails Alexis, McVane arrives and reminds him they're in this business together. Nervous that McVane will learn of his $100,000 hit on Alexis, Mark quickly opens an account at a local bank, as McVane looks on.

Adam and Dex vow to prove Alexis' innocence and begin a determined campaign. The woman who testified she had seen Alexis on the terrace with Mark had hosted a party that evening and snapped photographs. The negatives reveal it was Neal McVane who had framed Alexis for Mark's murder. Alexis is freed. Denver-Carrington is back in business. Alexis vows revenge on Dominique when she learns of her new partnership with Blake. Brady is stunned to learn of Dominique's true relationship with Blake. Upon returning home, Alexis receives a visit from a beautiful young woman named Amanda. She is Alexis' daughter.