When Chase Gioberti (Robert Foxworth) learned that he lost his father (Harry Townes), two feuding heads of a California wine-producing family chose to put all their moments behind for Jason Gioberti's funeral. When younger daughter, Emma Channing (Margaret Ladd) was responsible for her uncle's death, Angela Channing (Jane Wyman) tyrannical matriarch and owner of Falcon Crest, protects and calms her. When Chase's family heads back to New York, after the death of his father, he begins to remember all the fun times he had with his father. It was also Chase's call for his wife, Maggie Gioberti (Susan Sullivan) and children, Cole (William R. Moses) and Vicky (Jamie Rose), to move to their own house in California, at Falcon Crest, after a year's sabbatical that has taken a toll on his family. Unhappy with Chase's family moving back to the vineyard, Angela comes up with a way to forsake them, consequently, her grandson, Lance Cumson (Lorenzo Lamas) was shocked to hear about her decision for a competitive family to go back east.

Paul, an old friend of Chase comes to Falcon Crest, where they spent a great deal thinking of the times they had, while attending the Air Force. After taking a trip down memory lane, the two decided to turn their flying business into action, where they disagreed on where it needed to be located. Angela and her family finds out about this, and that Paul has no intention of doing a flying service, when he lies to Chase about the large sum of money from Chase to cover his gambling debt, this led Angela into kicking Paul out of Falcon Crest. When Paul tries to go with his plan, this made the businesses of Chase, Maggie and Julia, as to how he nearly ruined the vineyard, when they find a way to get this vineyard back.

Chase, lacking of staff, needing to owe $50,000 in property taxes, who, tries to sell all his grapes before harvest time, only to get Angela to buy them below their retail price. Chase chooses to sell them, after Gus told him that another buyer is interested in paying above their price for his grapes. When Angela learns about the business deal, she chooses to purchase the man's mortgage from the bank, so he can drop a deal with Chase, around the same time The Giobertis decide to sell their house in New York, to stay on board.

When Angela couldn't tolerate Lance's irresponsible behavior, she prevents her grandson from becoming the proud owner of Falcon Crest, therefore, she kicks him out, much to her contempt. Discovering from him of his grandmother's feelings towards him, he tries to please Angela by blowing up Chase's pump house and cause a fight in the springhouse, and later gets arrested, before he gets grounded by Angela, not Julia (though she told Lance, her mother was under the impression, who also gave Lance to him, away from Julia, as a little boy)! Once grape harvesting begins, Lance tries to please Angela, again, by paying off Chase's staff, afterwards, to make Lance jealous, Angela escorts Cole into becoming the new heir of Falcon Crest, who straightens out with his father about Chase's staff losing pickers. Cole learned about this, he takes the keys and the car back to Angela, returning to his parents' house. Lance told Angela about his actions, and the staff, before Chase confronts Angela about her doings with Cole and about Chase's staff being gone and demanded that the staff returns, early in the morning.

When Emma's lover, Turner Bates, who was on the scene when Jason died, returns, Chase informs him that Jason supposedly died in a car crash. Knowing this to be untrue, Turner seeks Emma to learn what happened after he ran from the scene on the night of Jason's death, but Angela throws Turner off her property. Turner sneaks back, steals Emma away and romances her in order to learn the truth. Unable to obtain any straight answers from Emma, Turner tries to blackmail Angela, who in turn calls in the police, and Turner, after a car chase, is accidentally killed. Chase and Lance pull Emma out and save her. When Maggie says that she may be pregnant, the Giobertis try to cope with the effects that it would cause.

While Emma draws closer to revealing the truth about Jason's death to outsiders, Chase steadily draws closer to learning the truth through his investigation. No longer speculating over his father's mysterious death, Chase finally gathers enough concrete evidence to go to the D.A., who in turn, calls for a coroner's inquest into Jason's death. While Angela attempts to impede this, she is forced to testify. Following his release from the hospital, Douglas tries to help Emma and escorts her to the inquest. However, before she can testify, Douglas has a fatal seizure and dies. After witnessing this, Emma runs off while Angela blames Chase. Angela learns of Melissa's pregnancy following a disastrous honeymoon and assumes Lance to be the father, despite his denial.

When Douglas is buried, Angela tries to keep Emma sedated to prevent her from testifying. Angela could lose Falcon Crest to Chase if his attorney can prove that Jason died under suspicious circumstances. When the coroner's inquest resumes, the D.A. mounts a circumstantial case that is easily rebutted by Philip when Emma is unable to testify. Defying her mother, Emma manages to escape from Falcon Crest and arrives to take the stand, confessing how she accidentally pushed Jason to his death while he fought with Turner Bates. The jury rules that Jason "died at the hands of another," thereby giving Chase control of Falcon Crest, but he magnanimously offers fifty percent of the vineyard to Angela. Though Angela detests the thought of sharing Falcon Crest with anyone, she has no choice and accepts. Another threat looms as Angela learns of Douglas's illegitimate son, Richard Channing, who has inherited fifty percent of The Globe.

At Lori's, Lance tries to delay Lori from getting out of bed. Lori is irritated that Lance keeps procrastinating in looking for work, since it has been a week since Angela threw Lance out of Falcon Crest. Ultimately, Lori gives in, and they make love. At Chase's office, Chase catches heat from Sheriff Robbins about going to the D.A. with Carlo Agretti's letter from Angela. Robbins doesn't believe the letter incriminates Angie in Carlo's murder. In Richard's office, Diana informs Richard that nearly everyone but Angela has accepted the invitation to Richard's housewarming at the McKay place. Richard is confident Angie will be there, since the party will have three of the nation's most respected wine critics. Richard wants his new neighbors to realize that buying the McKay vineyards was just ""the first step of a much longer journey."" At Falcon Crest, Angie not only tells Julia she has decided to go to Richard's party, but that Angie has the ability to be flexible, unlike Lance. Angie thr

Angela plans to bargain with the Giobertis for control of Falcon Crest; in return, Melissa must give Cole custody of Joseph. Melissa is at first horrified at the thought of giving up her baby for a piece of land, but later reconsiders the offer. Terry follows Angela's orders when she pits Michael against Chase, and Richard is at the mercy of the cartel's gangsters in opening his racetrack. Meanwhile, Maggie's article uncovering Jacqueline Perrault's crimes cuts through the valley with a razor's edge.

Emma and Lance discover Julia hiding out at the springhouse with her hostage Joseph. Terry receives a disturbing letter, dredging up more of her sordid past and forcing her to lie to Michael again. As Angela reads a letter that Julia had sent her while in college, she regrets having been too busy with her business career to spend time with Julia. In the springhouse, Julia agrees to release Joseph if Angela is brought to her. The police surround the house as Angela enters in exchange for Joseph. Angela admits to Julia that she has failed her as a mother and finally says what Julia has been waiting to hear, that she loves her. As Julia breaks down and hands Angela the gun, the deputy prematurely opens fire, igniting a kerosene lamp and setting the house on fire. Braving the flames, Lance and Chase dash into the house. Chase pulls Angela to safety, but Lance is knocked out by a falling beam and must be rescued from the fire. As the springhouse erupts in flames, Angela watches helplessly,

As Richard's first shipment of Francesca's wine is delivered for bottling, the truck is hijacked and the tanker is drained. Richard suspects both Chase and Cole, and after Richard and Chase fight, Chase concludes that the saboteur may be Riebmann and the cartel. He also details his suspicions that DeBercy may actually be Riebmann. Richard is surprised at the extent of Chase's knowledge about the cartel and so is Riebmann, who is listening from his surveillance room and realizes he must act quickly before his identity is revealed. He continues to use Emma to gather more useful information to further his plot. Meanwhile, Lorraine discovers that she is pregnant with Lance's baby. While Chase, Richard and Greg go to the authorities, Angela receives an invitation at gunpoint to visit Mr. Riebmann and his houseguest, Julia.

Michael, despondent at his mother's continued absence, runs away. Richard moves to block Angela's latest power play, while Frank Agretti returns to the Tuscany Valley. While Angela is prepared to help Maggie wrest custody of the children from Richard, Richard prepares to clip Angela's wings decisively in the matter of Glenbraddoch. Meanwhile, Michael's disappearance causes concern. Learning of Ben's accident, Frank Agretti returns to the valley, while Pilar and Lance agree to try to make their home at Falcon Crest.