The New Globe publishes news of Julia's escape, while Julia steals a wallet and buys a wig from a waitress at a roadside coffee shop. Melissa pays a heavy price for trading her son for power. Chase meets with Philip to determine how serious Angela is about trading Joseph for half of Falcon Crest. When Philip produces Angela's custody contract, Chase is appalled, but is pleased to know that he can pry Joseph out of Angela's clutches. Melissa begs Angela to call off the deal with Chase, but Angela tells her that it's too late. As Chase and Cole come to take her child, Melissa is overwhelmed by guilt. Later, Chase gets an anonymous tip that Richard bribed a county geologist to approve construction of the racetrack. At the cartel's behest, Pamela plants bugs in Richard's office and home. Terry remorsefully suffers the backlash from her sordid past, but surprisingly, Michael still asks her to stay in Tuscany. Julia uses her disguise to slip past a police checkpoint, then assumes the identit

Lance flies into a rage when he hears that Melissa sold Joseph to Angela for her half of Falcon Crest. Angela later warns Lance that he must mend things with Melissa since she is now Pamela's heir and if he doesn't, he'll be left penniless. Richard finds the bugs planted by Pamela, leading him to believe the cartel is closing in on him. Angela ignites a romance with Carter St. John, which makes Philip jealous. Maggie is running out of time as her tumor rapidly grows and must decide between risky surgery and radiation treatment. Her eyesight soon starts to fail, and Michael warns that if they don't operate on Maggie soon, her loss of sight could be irreversible. However, questions about Michael's surgical abilities still linger. Claiming she is afraid for her safety, Julia has Lucas teach her how to shoot a gun.

Michael convinces Chase to let him operate on Maggie's tumor, which has already taken her sight and may take her life. Michael enlists his former lover, anesthesiologist Lillian Heller, for helping with Maggie's operation. Lillian is a houseguest, which arouses Terry's jealousy. As Maggie is wheeled into the operating room, Chase wonders if he will ever see his wife again. At Falcon Crest, Angela urges Lance to reconcile with Melissa in order to produce a true heir to Falcon Crest. However, when Lance begs Melissa to give their marriage a second chance, she sees through his insincerity and coldly reminds him that she is the sole beneficiary to Falcon Crest and has no intention of sharing her empire with him. Philip adds to his winery staff by hiring away Angela's best people. Meanwhile, Pamela carries out Spheeris's orders to help destroy Richard, while Richard is preoccupied with trying to win over Chase to obtain his inheritance for the completion of the racetrack.

Just as Michael and Dr. Heller remove the last of Maggie's tumor, her heart stops. Working quickly, Michael and Dr. Heller manage to get a weak pulse, but Maggie is left in a coma. As Michael humbly admits that Maggie's fate is up to God, Angela prays for Maggie, Julia and Falcon Crest, and reunites with Philip, whom she believes she will be able to trust again some day. Meanwhile, Richard is crazed when he learns that Chase has turned over Jacqueline's fifty million dollar trust fund to St. Martha's convent in Paris at a time when Richard desperately needs the money. On top of this, the cartel's plot against Richard threatens Pamela's life. After Pamela is abducted by the cartel, Richard realizes that though he may have retained control of the racetrack, the cartel has the one thing he cares most about: Pamela.

When the cartel begins to carry out its plans to make a public spectacle of Richard's assassination at the grand opening of the racetrack, Richard, making a switch with the bomb, causes the cartel to explode its own limousine. Eager to please Angela, Lance promises that he and Melissa will produce a grandchild. Melissa learns, however, that she can no longer have children because of injuries sustained from the car accident. While the Giobertis believe that Michael and Terry are traveling to Mexico, they are surprised when the two announce their marriage. At Falcon Crest, Angela agrees to marry Philip. As detectives discover Julia's hideout, Lucas discovers Julia's true identity and murderous acts as she heads for Tuscany. Meanwhile, Lance secretly executes his plan for power using The Globe as his tool.

Sheriff Robbins notifies Chase, Maggie and Cole that Sam Giannini has been murdered, apparently during a robbery. Lance uses his new power to exploit Sam's death in The Globe. Maggie starts work writing copy at Richard's new radio station. Stephanie, Richard's ex-wife, comes to town and enlightens her daughter about Richard's past behavior, warning her that he may try to use her too. Gustav offers Mary Giannini his condolences and threatens to kill her if she does not sell her property to him. Chase has obtained a copy of the F.A.A. report and is enraged that someone is lying to frame him. In Italy, after Francesca Gioberti faces disaster at her vineyards, she travels to Falcon Crest, surprising Angela and seeking assistance from her cousins.

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.

Chase uses Emma's findings and confronts Senator Silverlake in Washington, D.C. with the evidence that he was bribed into faking the F.A.A. reports. Senator Silverlake confesses, absolving Chase of all blame in the crash. Lorraine demands that Lance print a retraction to an article that ties Richard Channing to the criminal underworld. Lance is more interested in seduction than retractions, but Lorraine strives to ignore his advances. Both Richard and Gustav court Francesca in order to get closer to her share of Falcon Crest. However, Angela and Greg persuade her to sign a contract for her share of the vineyards. Private Investigator Mike Harris informs Maggie that her real father was killed in World War II. Melissa tells Greg she cannot see him anymore as it will jeopardize her relationship with Cole, but Greg is persistent in pursuing her.

When Chase hears that Jasper's will is being re-opened, he becomes suspicious of Angela's motives and confronts her. Chase discovers that Francesca is selling her third of Falcon Crest to Angela in order to save her vineyards in Italy, but Francesca is confused since Angela told her that Chase would be pleased. Cole decides he loves Melissa enough to move in with her, even against his parents' warning. Richard tries unsuccessfully to keep Lance from seeing Lorraine and warns him not to hurt his stepdaughter. Francesca decides to throw a farewell party before returning to Italy. She performs the tarantella and berates her family for their greed and hatred. Jean-Louis helps Francesca by pilfering her agreement from Angela's safe. During the night, Gustav's henchmen tail Julia, seize her and drive off.