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.

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.