Angela is horrified when she learns that Francesca has evidence that she is Angela's half-sister and legal heir to one third of Falcon Crest. Angela then uses it to her advantage by making a deal with her to buy Francesca's third in order to control more of Falcon Crest than Chase. At Lucas Crosby's home, Julia tells him she is tired of running and being afraid someone will recognize her. However, when she goes to the police to turn herself in, they do not believe she is really Julia Cumson. Emma helps Chase obtain evidence that Buzz Whitehead was bribed into lying to the F.A.A. investigator, and Senator Silverlake was pressured into suspending Chase's license. Cole revives his love for Melissa, maintaining that they will have an open relationship, but Greg promises to destroy their relationship.

As Christmas arrives in Tuscany Valley, Frank agonizes over whether or not to leave his family to mine emeralds with Libby. Ben turns against Nick for lying to him about his mother. Unaware of Richard's assistance, Maggie is delighted with the overwhelming response to her special advertising offer. Richard offers to back Pilar's failing consortium through a blind company for a controlling interest. When Daniel Cabot discovers Emma's true identity, he abandons her. Although Angela celebrates the holiday by surrounding herself with family, Pilar's holiday is spoiled when she spots her brothers Tommy and Paco being chased by security officers. However, Christmas dinner at Pilar's home brings Nick and Ben closer together and Nick to admit his love for his father.

As Angela prepares to travel to Greece, she leaves her grandson Lance in charge, though under the strict supervision of her reliable foreman, Frank Agretti. Since Daniel, an unsuccessful author, has turned to gambling, drinking and brutality, Emma has become a battered wife. To escape her troubles, Emma turns to another man, Charley, for much-needed affection. In an effort to get out of prison, Richard decides to testify against his co-conspirator, Michael Sharpe. Richard evades an attempt on his life meant to stop his testimony. Accidentally getting her finger stuck in a pool drain, Maggie drowns. Angela hires a private investigator to tail Pilar.

Emma's old friend Charley arrives just in time for Maggie's funeral. Although Angela disapproves of Charley and changes her vacation plans, Emma stands by Charley despite Angela's interference. Michael Sharpe takes his revenge on Richard for his testimony against him by having Richard's children removed from his custody. Aware that Angela is trying to break up his relationship with Emma, Charley places a pillow over Angela's face and suffocates her.