The baby is recovered from the real kidnapper, Alfred Grimes, and it turns out he's the father of Roger Grimes. Fallon fires Susan. Claudia leaves for a sanitarium. Fallon starts looking for a job. Blake gives her his hotel La Mirada. She and Michael meet, but without knowing they may be brother and sister.

Alexis gives her newfound long-lost son Adam a job at Colbyco. Blake starts to believe that Adam may actually be his real son. Fallon and Adam keep flirting with each other, not knowing they are siblings. Adam has dinner with Krystle and Blake, but it ends with a conflict. Alexis finally meets Krystle's first husband, Mark.