In the aftermath of the earthquake, aftershocks rock the region and the people of the Tuscany Valley struggle to cope with the loss of property and loved ones. Father Bob transforms his church into a field hospital for the earthquake victims and as an information center for concerned friends and relatives. As the death toll mounts in the valley, Maggie and Cole wait in a San Francisco hospital for the doctor's prognosis of Chase's gunshot wound.

After the specter of Jeff Wainwright haunts Maggie, she overcomes her intrinisic fear of firearms and purchases a gun for protection. When Maggie's daughter Vickie returns home, she admits that not only has she has gone through two divorces, but that she lied about being a famous ballet dancer. Despite the ballistics test results, Maggie refuses to believe that a member could be responsible for shooting Chase. At Falcon Crest, Angela considers a foreclosure. In spite of a few close calls, Kit succeeds in hiding her past from Peter.

Upon his return to the Tuscany Valley, Wainwright, already keenly interested with the Giobertis, also becomes interested in Vicky. Angela's suspicion and the arrival of a detective jeopardize Kit Marlowe's masquerade. When Angela adds the valley's plush spa to her holdings, she learns that an unexpected source threatens her anticipated hold on the Agretti grape harvest. When Tony Cumson returns to the valley, he is appalled at the condition of his former wife, Julia, as Angela moves quickly to keep him out of the family.

While Maggie confesses the reasons for her distress to Chase, Wainwright changes his tactics to ingratiate himself with their daughter, Vicky. When Richard Channing discovers Kit's secret, he is able to use it to his advantage. Lance and Melissa find a common bond. Tony Cumson tries to reconcile his father-son relationship with Lance, but the wounds are too deep. Angela hosts a party for the opening of her spa.

As Chase hires a private detective to protect Maggie, he is unaware that his daughter also needs protection. Troubled by Kit's denunciation of Fixx, Lance fires Kit, while Angela plans to pit Lance against Fixx. Julia informs the family about an unexpected decision. Miss Jones falls for Richard's scheme and both fishermen think they have caught the big one. Richard also snares Angela to bail him out of their racetrack. Lance and Melissa return from their wedding and Fixx becomes suspicious of Kit's mysterious activities. Wainwright gets Vicky under his control.

A newspaper article alerts Vicky to the danger she's in with Wainwright, but, when he realizes she knows the truth about him, he terrorizes her and forces her to masquerade as her mother. Lance and Melissa have a wedding reception, which Angela reluctantly hosts, bringing forth mixed emotions from the guests. Chase and Melissa disagree about Joseph. Lance tries to persuade his father to finance his partnership in Melissa's winery, but Tony accepts Chase's offer. Emma's date, Richard, informs Angela that Tuscany Downs is being condemned. Peter and Angela argue over her stolen checks. When Maggie confronts Richard over his article on Wainwright, Chase approaches with fists flying.

After Vicky slips from his grasp, Wainwright returns to the valley and forces his way into the Agretti's house, attacking Chase in his pursuit of Maggie. When Lance can no longer compete with Angela's preoccupation with Dan Fixx, he surprises his grandmother with a new venture. Angela explains to Peter why she is taking such care of Dan, even after The New Globe reveals him as an ex-convict. At the last minute, Richard springs his trap on Miss Jones to save Chase's life. Cole disapproves of his father's new partnership with Tony Cumson. Kit tries to intercede in the matter of Angela's stolen checks because of the pain it is causing Peter.

After Angela, who is annoyed at Lance's defection to Richard's New Globe, continues her patronage of Dan Fixx, Emma seeks guidance from a storefront psychic. Kit appeals to Richard for help from Fixx, giving Richard a weapon to use against Angela. Cole is disenchanted with his father's partnership with Tony as Maggie is unable to help her troubled son or herself mend their relationships with Chase. Angela provides Miss Jones' sister with the nanny job in Richard's house. Richard dumps waste near Chase and Tony's vineyard.

While Chase buries himself in his business deals and his political campaign, Maggie agonizes over the problems of her children, but mostly about her baby. While Cole takes his unhappiness out on his family, Vicky grows closer to Dan Fixx. With her paternity tests inconclusive, Maggie's fears increase along with her determination. Chase and Tony discover that their vines are withering. Angela and Lance fight over his association with The Globe and her obsession with Dan Fixx. Meredith starts her seduction of Richard Channing. Lance conspires with Karlotti to take over Emma's stock certificates in The New Globe. A hit man sees through Kit's disguise.

Maggie's determination to keep her baby, regardless of the consequences, further alienates her from her family. Cole is adamant about leading his life away from the family, and Maggie has no choice but to give him her blessing. Vicki goes to see Dan Fixx, whom her parents disapprove. Chase accepts his wife's views on her upcoming motherhood. Angela attends Karlotti's seance, which is instrumental in giving Lance control of Emma's holdings. Chase and Tony discover vineyards contaminated from the dumping at Tuscany Downs, with evidence pointing to Angela's conspiracy to ruin her rivals. Fixx confides in Vicky. Lance moves to take over The Globe.

As Maggie fights her loneliness, Chase struggles to save his vineyards, and Angela strives for her freedom. Vicky allows her parent's problems to affect her relationship with Dan Fixx. As Chase's marital problems reflect on his campaign for county supervisor, he and Maggie face the facts about their troubled marriage. Even though Peter is troubled over Angela's innocence or guilt, he loyally stands by her. Richard is determined to defeat Lance's attempt at a takeover of The New Globe as the specter of Miss Jones begins to haunt him. Kit succumbs to Tony's charm, but is terrorized by Stafford.

Due to his past manipulations of Melissa's life, Lance's attempt to win control of The New Globe backfires. Richard overcomes Lance's ploy to control The New Globe by producing the man who framed Melissa, who demands that Lance move out. Emma brings Karlotti home to trace Wayne's spirit and begins to transfer her affections to the medium. Angela begins to believe that Lance framed her. Kit is reluctant to leave Tony for Guy and his plans of a fake suicide. Dan is able to break through Vicky's defenses. Maggie observes Chase's victory kiss from Gwen and has complications with her pregnancy.

Preparing to disappear, Kit, with Stafford advising her, lays the groundwork to make her fake suicide plausible and realizes that she will sever many important ties. Angela has a dinner party for Peter's birthday. Seeking help for her troubled marriage, Melissa looks in the wrong places. Maggie discovers that her baby may be born with problems and turns Chase away when he fails to understand her feelings. Meredith hires her former supervisor to rescue Erin Jones, while Angela offers Vicky a new job at the spa.

When Skyler's disappearance and apparent suicide casts a pall over the mansion, Peter blames himself for not recognizing her distress. Peter's guilt drives him away, but Skyler's tragedy makes Emma finally realize that Dwayne is gone forever, and Angela is at last able to comfort her daughter. Tony learns the truth about Skyler (Kit). When Richard's son is kidnapped, he feels lost. Chase faces the fact that, of the two people in the valley he most despises, Richard and Angela, one is taking flowers to his wife and the other is trying to get closer to his daughter. Lance calls for his father's help when Melissa has a nervous breakdown.

When Maggie prematurely gives birth to her baby at Falcon Crest, Angela conspires with rich newcomer Roland Saunders in her plans to destroy Richard. Angela finds a kindred spirit in Saunders, ""the rudest billionaire in the Fortune 500."" When Richard offers to sign the birth certificate of Maggie's baby, Chase surprises them by signing it himself. The idea of the new baby troubles Emma. Lance questions his father about Kolinski, while Tony has to lie to his son to protect Kit. During Angela's international wine show at the spa, the matron of Falcon Crest arrives with Saunders, and Peter disapproves.

At Angela's engagement party for them, Vicky and Dan set the tone of the party by trying to avoid it. After Kit demonstrates a need to tell Tony good-bye, both Richard and Peter confront Saunders. Maggie arrives looking for her baby, which she now knows is Chase's. After Emma confounds Angela by introducing her adopted son, one of the guests is found dead in the winery.

When Kit comes to Tony's defense, the gesture proves worthless. Tony's trial proceeds as if D.A. Wilkinson had scripted it, until Kit arrives at the courtroom. After Chase uncovers evidence that Melissa had engineered the botched paternity test, he is too late to intercept her due to Angela's threats. Chao-Li loses face because Angela and Lance stay up all night to take care of him. After Chase and Maggie decide on a quick divorce, Richard sees his chance for happiness.

Melissa's desperate attempts to keep the baby result in a car chase that ends when the car carrying her, Chase, Maggie, Richard and Dan plunges into San Francisco Bay. Angela discovers that her child, whom she previously believed to have died in childbirth, is alive and ready to return to haunt her. When Angela and Peter reconcile and she tries to buy Peter's freedom, Peter, facing murder charges, flees with Kit.