Kimberly sets off her bombs, destroying half of the building. MacKenzie suffers a fatal heart attack. Billy breaks down Alison's door and pulls her to safety, although she is blinded by the blast. Peter saves Kimberly from drowning after the impact knocks her into the pool. Kimberly is placed in the psychiatric ward, and is unable to recall the events of the past week. Billy storms out when Hayley calls him to task for not immediately taking Brooke on their honeymoon. Brooke later moves out of the mansion and into Billy's apartment. Jess is killed in the fall from the construction site, while Jake suffers only minor injuries. He shuns a guilt-ridden Jo. The jailed Matt is enraged when his parents seem to suspect that he is guilty of murder. They win back his trust when they put up their mortgage to bail him out of jail.

Kimberly rejects Michael's final attempt at a reconciliation. He decides to stay with Matt for a while, but Kimberly urges Megan to get Michael back. Dan pressures Matt to move in with him. Peter turns to golf to lift his spirits when he fails to win the chief-of-staff position. Amanda puts up with his behavior, until he loses a large bet over a golf game to Kyle. Taylor convinces Peter to join her in lighting a candle in Beth's memory on the anniversary of her death. She reveals that she forged the final entry in Beth's diary so that Peter would be cleared. Arthur calls off his lawsuit when Craig threatens to reveal a family secret. Samantha abandons her studio when she realizes that Craig is expecting something in return. Sydney takes a second job as a hostess at Kyle's. Sherry meets with Jane at a mansion, and asks that she seek no further contact. Jane later discovers that Sherry actually lives in a small apartment, and tries to reach out to her mother.

Peter learns that Lexi has uncovered the truth about his involvement in Amanda's kidnapping. Peter returns the ransom money to Amanda and Kyle, explaining that Beck pressured the kidnappers. Lexi threatens to expose Peter unless he sleeps with her. Peter decides to call her bluff, and Lexi races to the club to talk to Amanda. Amanda burns the journal--and the missing page--after Kyle continually accuses her of protecting Peter. Ryan tries to make a move on a reluctant Megan. Megan takes a job for Lexi, and winds up vying with Ryan for an account in Arizona. Car problems force the two to spend time together, but Megan says that she is not ready for a relationship. Michael is jealous of Jane's new working relationship with Alex. He decides to push Jane away to see if she can resist Alex's advances. Michael spies Alex kissing Jane at a restaurant.