Der große, reiche Ölmagnat Blake Carrington und seine ehemalige Sekretärin Krystle Grant Jennings wollen heiraten. Krystle's Ex-Freund Matthew Blaisdel, der seit anderthalb Jahren als Geologe auf einer von Blakes Ölplattformen im Nahen Osten arbeitet, hat sich in den Kopf gesetzt, sie zu heiraten.

Matthew bekommt einen kleinen Besuch von einem alten Bekannten, Walter Lankershim. Walter bittet um Geld, weil er in Schwierigkeiten steckt. Er hat sich Geld von Blake geliehen, um nach Öl zu bohren, aber er ist nicht fündig geworden. Matthew weigert sich, ihm Geld zu geben. Matthew besucht seine jetzige Frau Claudia, die seit 18 Monaten in einer psychiatrischen Anstalt ist, aber er erfährt, dass es ihr viel besser geht und sie entlassen wurde.

Blake und Krystle heiraten endlich. Blake spricht ein wenig mit seinem Sohn über seine Homosexualität. In der Villa findet eine große Hochzeit statt, und unter den Gästen sind Cecil Colby und sein Neffe Jeffrey Broderick ""Jeff"" Colby. Cecil ist ein großer Ölmann wie Blake, aber er ist viel größer, und Blakes Firma, Denver-Carrington, ist nur ein Zeitungskiosk im Vergleich zu Cecils ColbyCo Oil.

Blake und Krystle müssen ihre Flitterwochen unterbrechen, weil Blake eine kleine Krise auf der Arbeit hat und nach Hause fahren muss, um etwas zu erledigen. Walter bekommt Ärger mit den Arbeitern auf seiner Bohrinsel, aber er bringt alles wieder in Ordnung, und sowohl Matthew als auch Steven bekommen dort einen Job. Blake gefällt das gar nicht. Krystle hat Probleme, als wohlhabende Frau mit all den Bediensteten und dem Geld zurechtzukommen.

Walter nimmt Steven mit in ein Bordell, um zu versuchen, ihn "wieder aufzurichten". Auf Matthews und Walters Bohrinsel geht etwas schief, Steven wird der Sabotage beschuldigt, und obwohl er unschuldig ist, verliert er seinen Job. Blakes Plan ist es nun, Walters und Matthews Bohrinsel zu übernehmen, wenn sie in Schwierigkeiten sind. Krystle mag Blakes Methoden bei seiner Arbeit nicht. Sie verpfändet eine Smaragdhalskette und leiht Matthew das Geld, um ihm zu helfen.

Blake erfährt von Krystle's ""Verpfändung"". Er sagt es ihr nicht, aber er beginnt, sie mit Andeutungen zu erschrecken. Jeff weiß jetzt, dass seine Ehe mit Fallon nur ein Teil eines Deals ist, und er tut alles, um seine Frau in Verlegenheit zu bringen. Besonders während einer Geburtstagsfeier, die Blake für Cecil schmeißt, schreit er allen zu, was er von ihnen hält. Ted versucht immer noch, sich wieder in Stevens Leben einzumischen. Matthew gelingt es, das Geld an Krystle zurückzuzahlen, und sie will ihre Halskette zurückkaufen, aber der Pfandleiher hat sie bereits verkauft.

Blake wird wegen des Mordes an Ted verhaftet, und es kommt zu einem großen Prozess. Der Staatsanwalt ist Jake Dunham, ein alter Freund von Claudia und Matthew, der Blake nicht leiden kann. Krystle erfährt von dem Prozess und beschließt, zu Blake zurückzukehren, um bei ihm zu sein und ihre Probleme später zu lösen. Fallon hat Angst und will ihrem Vater helfen und lügt vor Gericht. Steven sagt jedoch die Wahrheit darüber, was wirklich passiert ist.

Blake's Prozess geht weiter. Sowohl Joseph als auch Claudia und Krystle müssen aussagen. Als Claudia aussagt, muss sie erzählen, dass sie eine Affäre mit Steven hatte, und dann findet Matthew das heraus. Er rebelliert im Gerichtssaal, greift Blake an und muss ins Gefängnis. Claudia packt ihre Sachen, rennt weg und nimmt Lindsay mit. Unterwegs stoßen sie zusammen und ziehen sich schwere Verletzungen zu. In der Schlussszene ruft Jake Dunham einen neuen Zeugen auf, und eine geheimnisvolle Frau kommt herein.

Alexis testifies against Blake, and tells about an incident several years ago, when Blake discovered her in bed with her lover, Roger Grimes. Her testimony proves that Blake is a violent man, and things doesn't look too good. Fallon and Blake welcome Alexis with hate and rudeness, but Steven is friendly to her. Claudia wakes up in the hospital and discovers that Matthew has run off with Lindsay.

Blake is convicted to two years unconditional prison. Blake first wants to appeal, but changes his mind. We can now see the first sign of Alexis being the ""big bitch"" in the series. Both she and Blake hate each other, and she decides to move into an old house which once belonged to her in Blake's garden. Blake fires Michael. Claudia tries to track down Lindsay and Matthew, but with no luck. Blake tries to talk to Steven, but it ends with a fight. Krystle discovers she's pregnant.

Claudia is released from the hospital. When she comes home, she tries to kill herself by taking an overdose with pills, but she's saved by Blake's friend, dr. Nick Toscanni. It turns out that Nick's secret plan is to get back at Blake for something that happened in the past. Fallon and Jeff decides they want to have a baby. Claudia moves into the Carrington mansion. Blake tries to get Alexis out of his property. Alexis tells Steven that he is Blake's only child and that Fallon's father is another man.

After losing her baby due to the fall from her horse, Krystle learns she cannot have another child. Steven and Sammy Jo begin dating, but at his cabin, he finds he cannot make love to her. Jeff quits his Uncle Cecil's business and joins Denver-Carrington. Fallon continues her affair with Nick Toscanni. Steven professes his love to Claudia and asks her to marry him. She declines, stating she's still in love with her husband. Fallon interrupts Nick's visit to Krystle in the hospital and angrily assumes the worst, demanding to know if she is "another page in his appointment book." Blake's attorney, Andrew Laird, returns from Washington with news of more trouble with the Middle Eastern oil leases.

Krystle almost sleeps with Nick, but stops the whole thing. Nick says he's in love with her, and that he wants her, but she won't cheat on her husband. Blake comes home and tries to tell her the paparazzi photo is not what it looks like, but she won't believe him. Jeff is angry with Fallon because of her abortion plans and wants to divorce her. Fallon cancels the abortion. Steven and Sammy Jo get married, and Steven decides he's interested in car racing.

Blake is frustrated because of the blindness. He's also sure that Bonning is behind the bomb attack and settles plans to get revenge. Krystle wants to wait with telling Blake about her divorce plans until he's better. Blake wants Fallon and Jeff to be friends and stay together and have their baby in peace. Fallon tells Alexis about her affair with Nick, and that she's deeply in love with him. She's also found out about Krystle's relationship with Nick and Alexis is going to help her get Krystle out of their lives.

Blake has been doing some research on Nick and finds out that Nick's brother Giani worked for Denver-Carrington, but was killed in the Mideast problems. Alexis starts trying to help Fallon in her ""battle"" against Krystle but Fallon doesn't want her help. Blake goes to a kind of trial against Logan Rhinewood, but with no luck. Fallon and Jeff are not getting along; Jeff doesn't care about Fallon, and Fallon is deeply in love with Nick. Blake gets an anonymous letter saying: ""Why do so many frustrated wives end up in bed with their shrinks? Ask your wife."" Blake also gets his sight back, but the only one who gets to know about it is Joseph.

Blake gets a meeting with Logan Rhinewood set up. Steven goes to Hollywood and finds Sammy Jo modeling in a cheap studio. Blake and Cecil takes a blood test and it proves that Blake is Fallon's real father. Alexis and Cecil start flirting with each other. The last news about Matthew and Lindsay is that they are dead. When Claudia finds out, she blames Cecil and wants to shoot him. Krystle tries to stop her, and in their struggle, the gun goes off.

Claudia is badly hurt after the shooting and has an operation at the hospital. The police starts asking questions and thinks Krystle is responsible for the accident. Blake finally gets to talk to Rhinewood, though it's just by using a microphone, so Blake can't see Rhinewood. What Blake doesn't know is that the man he's talking to really is Cecil. Cecil and Alexis sleeps with each other again and Cecil proposes to Alexis. Claudia survives but has talking problems and does not remember the accident.

Krystle suspects Alexis knows the reason for Jeff's illness and tells Blake, who is busy obtaining an injunction to prevent his ex-wife from taking over his company. Jeff is discharged from the hospital; the poison in his body still not identified. Mark and Fallon return from Haiti, and Kirby observes them kissing passionately in the mansion's entryway. Kirby fantasizes making love with Jeff. In Singapore, Steven's secretiveness continues to arouse Dr. Chen's curiosity. Blake receives a call from Singapore and learns Steven may have been found.

When Blake learns Steven's attorney Chris has moved in with his son, he vows to fight for custody of little Danny. Morgan Hess, Alexis' private investigator asks his employer for a large sum of money to payoff a gambling debt; when Alexis refuses, Hess leaves with a threat. Kirby realizes her baby was fathered by Adam. Fallon meets with Adam's former physician, Dr. Edwards, who tells her of Adam's temper and underlines his brilliance: He once won a case by proving a plant worker was poisoned and driven insane by chemical fumes. Realizing the connection to Jeff's illness, Fallon asks the hospital to investigate. Alexis tricks Krystle into meeting her at Steven's cabin, where she offers her $1 million to leave Blake. Outraged, Krystle rises to leave, but the door will not open--someone has bolted it shut from the outside, and smoke is pouring in from under the door........

Alexis receives a note written by the late Joseph, stating that he indeed set the fire to kill her because of the lives she's ruined with her manipulations. Alexis laughs it off, claiming she never intended to tell Kirby her mother was an ""attic nympho."" Blake lies to protect the girl, telling Kirby her father was worried Alexis would take control of Denver-Carrington and tried to kill her out of loyalty to his employer. When the murder attempt failed, the butler tragically killed himself. Claudia is released from the sanitarium and she and Steven make love. When Steven learns of Blake's plan to sue for custody of little Danny, he becomes enraged. Both men lose their tempers and wrestle each other to the ground.

Kirby angrily demands that Alexis divulge the real motive behind her father's murder attempt. In a fit of rage Kirby tries to strangle Alexis. Steven finds a social worker snooping around his apartment and orders her to leave. The incident later is brought up at the custody trial, and the woman describes Steven's behavior as a typical homosexual reaction. Steven's attorney and roommate Chris Deegan brings to the court's attention that Blake has previously been convicted of murdering a gay man and harbors a blind prejudice against homosexuals. Alexis testifies that Blake purchased the baby from Sammy Jo. When Blake loses his composure and lashes out at Alexis, the judge orders him to control himself and adjourns the hearing.

Alexis arrives home from the trial to find her apartment ransacked. Police Lt. Merrill speculates there may be a connection between the break-in and the recent attempts on her life. Fallon testifies on Steven's behalf. When she leaves for Montana, Alexis tells Adam that if her trip has anything to do with the poisoning incident, he's on his own. On the witness stand, Sammy Jo fabricates tales of Steven's sexual promiscuity. That night, Claudia barges into Sammy Jo's hotel room and demands she retract her courtroom statements. Claudia tells Steven she has devised a fool-proof method for him to retain custody of his son.

Following through on the plan to retain custody of Danny, Steven and Claudia fly to Reno and are married. When the judge receives the assurance they will jointly rear the child, the suit is dismissed. Attempting to win Krystle back, Blake offers her a public relations job at Denver-Carrington. Adam asks Alexis to sign three routine documents, but the second and third pages are positioned so only the signature line is exposed. When alone, Adam crumples the first page and carefully places the other two in his pocket. Fallon and Jeff investigate the poisoning incident in Montana. They are stunned to learn the name of the prosecuting attorney was Michael Torrance--the name Adam used before arriving in Denver.

Nervous about leaving her new job, Krystle gives Tracy final instructions as she prepares for her honeymoon in Rio de Janeiro. Tracy persuades Krystle to give her the company credit cards as well as the keys to the confidential files. Peter arrives at La Mirage asking for Fallon, and makes a pass at Claudia. As the wedding guests arrive, Adam demands Kirby tell their child the true identity of his father. Learning she intends to divorce Jeff, Adam asks Kirby to marry him. Krystle and Blake exchange vows and are pronounced husband and wife.

While Mrs. Gordon is walking Danny in the park, a strange man greets the child by name. Recalling little Blake's kidnapping, Claudia moves the family into the safety of the Carrington mansion. Laird discovers Tracy scanning confidential company files. Kirby and Jeff sign their divorce papers. After shelling out over $2 million to work on one of Peter's hotels, Ernesto the architect demands to know when he will be repaid. He wonders if the money is going toward Peter's ""habit."" Kirby's hand suddenly begins to swell uncontrollably, making it necessary to cut off her wedding ring

Blake and Ahmed close their international China Seas oil deal. Alexis learns of the coup and makes plans for a counterattack. Blake confronts reporter Grayson regarding his deceptive behavior with Tracy, and then quits his political post. When Tracy makes sexual advances toward Blake, she is fired. Steven is suspicious to see Dex in Alexis' office bearing violets - the same flowers being sent mysteriously to Claudia. Kirby's search for her mother leads her to the cemetery and her mother's grave. In Hong Kong to do business with Ahmed, Alexis rekindles their former romance. Claudia receives yet another mysterious call, this time from Dex.

Steven accuses Adam of conspiring with Sammy Jo to kidnap Danny. Blake arranges to take out a mortgage on the mansion. He little suspects Alexis has signed the note and will become the owner if he defaults. A cross-country search for Fallon has developed few leads. Warren Ballard and Adam prepare Alexis' defense. Dominique Deveraux makes her singing debut at La Mirage, with Blake and Krystle in attendance. Krystle quickly senses Dominique's hostility toward Blake. Brady declines the Carrington's hospitality as well. Jeff finds a truck driver who gave Fallon a lift to Portland, Oregon, the night of the accident.