In order to save his football team and repay the $9 million to Cecil Colby, Blake flies to Las Vegas and obtains a loan from gangster Logan Rhinewood. Nick tells his sister that Blake is to blame for the death of their kid brother, who hanged himself in jail. He intends to find proof and claim vengeance. Sammy Jo has a nightmare and goes to Steven for comfort. In the morning, Alexis sees her leaving and promptly tells Krystle that the two spent the night together. When Alexis suggests that Steven, once again his father's heir, should consider marrying, he asks Claudia to give some thought to a future together. Fallon and Nick make love. While skeet shooting, Alexis spots a pregnant Krystle riding her horse. She fires, and the frightened animal throws Krystle to the ground. She is rushed to the hospital, in danger of losing the child.

Blake pretends he's still blind. Everything about Nick and Krystle is out in the open. Blake and Nick talks about the death of Nick's brother. Krystle brakes up with Nick and plans to leave Denver. Sammy Jo starts taking advantage of being a ""rich mans wife"". Blake does not like the idea of Steven being a racer driver and offers to adopt Jeff. Cecil, who has been helping Claudia finding Lindsay blackmails her to get information from Denver-Carrington if she wants to get more information. Blake persuades Krystle to stay in Denver when she tries to leave.

Alexis and Blake continues the search for Steven together with Dan Cassidy, who worked at the rig, and finds more signs of Steven being dead. Blake refuses to believe it, and hires a psychic, Jason Denner, to help. Jeff gets really ill from the paint in his office. Adam rapes Kirby. Frank surprises Krystle outside La Mirage, still wanting the money, but Mark beats him up, and then bribes him to get him away.

An obviously ill Jeff continues to function in a confused state. Sammy Jo announces she's headed for New York to make it big as a model and no longer wants to keep her son, Danny. Blake offers the girl $100,000 to be a mother to the child, but she declines. Alexis betters the offer and is also turned down. Krystle and Blake are overjoyed to learn Sammy Jo wants them to be Danny's adoptive parents. Alexis continues her affair with Mark. Steven, alive in a Singapore hospital with his face bandaged, regains consciousness. The doctor explains that severe burns incurred in the oil rig explosion necessitated plastic surgery.

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.