In her new position, Krystle launches a publicity campaign to counter Alexis' slanderous remarks against Denver-Carrington. Jeff rejoins Blake's firm. Dex continues his campaign to win Alexis. Jeff learns Kirby was pregnant when they wed and is shocked to learn that Adam raped her. Fallon accompanies Blake and Krystle to L.A. to consult an architect about expanding La Mirage. While at the track, Fallon is swept off her feet by a millionaire playboy, Peter DeVilbis.

At Alexis' office, Dex discovers a confidential file marked ""Tar Sand"" and beats her to the contract. Later, he offers her a 60-40 split. An enraged Jeff locates Adam at the summit of the Carrington Plaza. After exchanging vicious insults and violent punches, Adam tumbles halfway over the edge. As Jeff is about to finish him off, Adam frantically explains he had no idea he fathered Kirby's child, and Jeff allows him to crawl to safety. Jeff intercepts Kirby as she is about to leave for Paris. Blake proposes marriage to Krystle, who happily accepts.

Kirby proposes that she and Jeff divorce. Adam tells her he wants to be a father to their child. Dex and Alexis make love. Jeff is jealous to see Fallon with Peter DeVilbis. Peter's champion racehorse, Allegre, is up for sale, and Blake decides to buy the mare. At the Carousel Ball, the high point of Denver's social season, Blake and Krystle announce their intentions to remarry. Steven warmly wishes his father the best. Blake is touched by the gesture and welcomes his son back into the family.

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

Kirby is diagnosed as suffering from hypertension. Adam is startled to find her slumped against the piano. After learning she will accept his marriage proposal, Adam confesses raping her to a shocked and disgusted Blake. Peter offers Fallon cocaine. Tracy purposely misplaces an urgent business memo from Blake to Krystle. As an agitated Blake awaits his publicity director at an important meeting, Tracy cunningly shows up and 'saves the day.' Allegre the racehorse is discovered missing. Claudia receives a box of violets with a note reading, ""Remember? Lancelot."" Trembling with fear, she recalls that Lancelot was her late husband's nickname.

Blake receives a note requesting $2 million in diamonds for the return of his racehorse, Allegre. Peter proposes to Fallon and then makes another pass at Claudia. Dex and Alexis close a lucrative oil contract. While pouring herself a glass of water, Kirby's hand begins to tremble uncontrollably. Diagnosed as suffering from hypereflexia, a condition that may lead to convulsions or heart failure, Kirby remains hospitalized while Adam keeps an all-night vigil in her room. Suddenly, her body becomes rigid and goes into convulsive seizure.

Peter has made arrangements for the ransom to be delivered to Allegre's captors. Blake grows suspicious of his refusal to call in the police and is unhappy about Fallon's decision to marry him. Kirby suffers a second seizure. To save the baby's life, the doctors decide to operate. Congressman McVane attempts to enlist Mark's help in blackmailing Alexis. Claudia receives another box of violets from 'Lancelot.' Beset with guilt, Adam confesses to Blake that he, not Alexis, attempted to poison Jeff. As Blake struggles to understand, Kirby's doctor appears to report that Kirby is alive, but they were unable to save her baby girl.

With the family at the hospital waiting for Fallon to regain consciousness, Blake races to the airport to intercept Peter. Passing through security, DeYilbis sets off an alarm and the guards find a cache of drugs in his briefcase. Blake blocks his escape, and Peter is taken to jail. Blake is offered an important political post. McYane informs Alexis of the appointment. He is sure she will try to topple him and wants to be there when she does to blackmail her. Kirby accepts Adam's marriage proposal. Fallon regains consciousness and finds she is paralyzed.