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.

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.