Middle Eastern oilman Farouk, anxious for vengeance against Blake, tells Nick that Carrington is responsible for the death of his brother. Nick attacks Blake, who is left unconscious at the bottom of a deep ravin; Cecil suffers a heart attack in Alexis' apartment.

Steven is arrested; Alexis and Cecil plan to marry; Fallon tells Nick it's over between them; Claudia believes Fallon's baby is her now deceased daughter Lindsay.

Claudia remains confused following the accident; Jeff urges Fallon to reconcile; Steven is blackmailed by a young drifter.

Claudia is hospitalized after the shooting incident; Krystle is implicated. Logan Rhinewood continues to amass Devner-Carrington; Cecil proposes marriage to Alexis.

A blood test proves that Blake is Fallon's true father; Steven travels to Hollywood in search of his wife; Claudia learns her husband and daughter are believed to be dead; as Krystle struggles with an armed Claudia, the gun discharges.

Upon learning he is not her true father, Fallon refuses to see Blake; Jeff falls in love with Claudia, who is caught stealing from Denver-Carrington; Fallon's baby undergoes emergency surgery; Claudia's husband and daughter are believed dead.

Fallon gives birth to a son; Alexis offers Sammy Jo $25,000 to leave Denver; Jeff and Claudia make love; Krystle accuses Alexis of killing her baby; Alexis learns Krystle and Blake are not legally married.

At a party in her honor, Sammy Jo embarrasses the Carringtons and reveals to Fallon that Blake is not her father; Jeff leaves the party with Claudia; Blake tells Krystle his eyesight is restored; Fallon is left unconscious after a car accident.

Krystle says goodbye to Nick and leaves Denver; Blake offers to adopt Jeff; Cecil blackmails Claudia; Nick accepts Blake's explanation of his brother's death.

Fallon confesses her love to Nick, but he is interested in Krystle; Blake's attempts to bring gangster Logan Rhinewood before a Crime Committee hearing are thwarted; Sammy Jo tells Alexis she knows her secret; Blake receives an anonymous letter revealing that his wife is sleeping with Nick Toscanni; Blake regains his eyesight.

Blake remains blinded following the explosion; Nick asks Krystle to divorce her husband and marry him; Blake investigates Nick's past; Alexis is determined to drive Krystle from Denver.

Nick persuades Krystle to leave Blake; Steven and Sammy Jo announce they are married; Blake is attacked by gangsters and blinded when his car is bombed.

Nick tells Krystle of his deep feelings for her; Steven and Sammy Jo marry; Fallon cancels her abortion; after the scandal caused by the papparazzi photos of Alexis and Blake, Krystle leaves her husband.

Alexis tricks Blake into coming to Rome and further traps him by hiring a gossip photographer to snap suggestive photos of the two; Jeff begs Fallon to cancel her abortion; as Nick confronts Krystle, his consolation gives way to passion.

Fallon learns she is pregnant and tells Jeff she is having an abortion; he agrees to divorce her but only if she bears the child. Krystle remains despondent over the loss of her baby; Claudia takes a job with Denver-Carrington; Alexis lures Blake to Rome under the guise of a business deal.

Krystle loses her baby; Steven and Sammy Jo begin dating, although Steven is in love with Claudia. Fallon continues her affair with Nick, and is jealous to find him visiting Krystle in the hospital; Denver-Carrington suffers more problems with their Middle Eastern oil leases.

Nick reveals to his sister that Blake is responsible for the death of their younger brother; Sammy Jo and Steven spend the night together; Alexis shoots at Krystle's horse, causing her to be thrown to the ground and hospitalized, her baby's life in danger.

Steven returns to the mansion to recover from injuries sustained by his fall; Krystle's niece, Sammy Jo, arrives to spend a few weeks with the Carrigtons; Alexis hires a private investigator to delve into Krystle's past.

Alexis tells Cecil Colby that Fallon is his daughter; Blake and Steven are urged to reconcile; Dr. Toscanni pulls an unconscious Steven from the pool and rushes him to the hospital.

Claudia attempts suicide; Alexis tells Steven that he is Blake's only child.

Blake is found guilty; Krystle reunites with her husband; Blake strikes Steven; a pregnant Krystle suffers a fall; Alexis moves onto the Carrington estate.

Blake's first wife Alexis testifies that Blake is capable of violence; Matthew takes off with Lindsay; Alexis tells Steven of her love for him; the jury announces they have reached a verdict.