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Kirby's attempt to kill Alexis is unsuccessful, and Alexis promises to remain silent if Kirby will leave Adam; Sammy Jo reveals the culprit behind Claudia's mystery calls; Fallon is gripped with a seizure and drives off as her wedding is about to begin; Alexis is arrested for Mark's murder.
Blake mortgages the mansion to raise money; Tracy tells Alexis of her affair with Dex; Alexis is questioned about Mark's death; Sammy Jo intends to obtain custody of her son; an unknown woman, full of curiosity about Alexis, checks into La Mirage.
Alexis thwarts Blake's loan extension; Sammy Jo arrives in Denver to see her son; after quarreling with Alexis, Mark is found dead after a fall from her balcony.
Blake travels to Hong Kong to patch up the China Seas oil deal and learns Ahmed has left the country; Mark blackmails Alexis for $100,000, and McVane watches as he deposits the check; Kirby attempts to kill Alexis but is unsuccessful.
Kirby learns the truth behind her father's suicide; Krystle tells a stunned Alexis of her pregnancy; Fallon and Jeff announce they will remarry; Alexis' manipulations come to fruition when Rashid Ahmed announces Blake is planning to attack a nation involved in the China Seas Deal.
Dex finds Alexis with Rashid and turns to Tracy for comfort; learning the reasons behind her father's death, Kirby buys a gun; the mysterious caller turns out to be a tape recorded message; Alexis moves ahead with her plan to ruin Blake.
Alexis makes plan to upset Blake's business deal with Rashid Ahmed; Tracy attempts to seduce Blake and is fired; Steven grows suspicious of Dex, as Claudia receives a mysterious phone call.
Krystle learns she is pregnant; Fallon suffers from painful headches; Claudia and Steven visit Matthew's accident site in Peru; once home, however, Claudia receives a phone call from her late husband.
Alexis attempts to bribe Kirby to prevent her from marrying Adam; Claudia receives another package from her late husband; Fallon remains unable to walk, until her child's life is in danger.
Peter De Vilbis, caught while trying to leave the country, is arrested for possession of drugs and jailed; Blake is offered a political post; Fallon regains consciousness and learns she is paralyzed.
Allegre is returned and Blake's suspicions about Peter's involvement are founded; Tracy orchestrates a press campaign to ruin Krystle; learning her fiance has left the country, Fallon dashes from the hotel and is struck by a truck.
Blake grows suspicious of Peter De Vilbis; Claudia receives more violets from 'Lancelot'; Adam tells Blake the truth of the poisoning incident; after suffering a seizure, Kirby undergoes emergency surgery and loses her baby.
Blake receives a ransom note for the return of his horse; Peter announces Fallon will be his wife; Dex and Alexis mix business with pleasure; Kirby suffers a seizure.
Kirby's health problems continue; Peter urges Fallon to try cocain; Tracy sabotages Krystle at the office to gain Blake's favor; Allegre the race horse is stolen; Claudia receives violets...from her late husband.
A stranger greets little Danny by name; worried, Claudia moves the family into the mansion; Peter De Vilbis' architect hints at the playboy's drug problem; Kirby's hand swells uncontrollably.
Adam proposes marriage to Kirby, who intends to divorce Jeff; Tracy persuades Krystle to give her the company credit cards and confidential files; Peter makes a pass at Claudia; Krystle and Blake are remarried.
Dex and Alexis make love; seeing Fallon with Peter, Jeff grows jealous; Blake buys Peter's race horse; at the Carousel Ball, Blake and Krystle announce their marriage plans
Dex beats Alexis to the punch on a new business deal. Jeff nearly kills Adam over Kirby's rape. Blake and Krystle decide to remarry.
Dex continues his efforts to win Alexis; Jeff learns Adam raped Kirby; Krystle relishes her own publicity post; Fallon meets a dashing millionaire at the track.
Jeff accuses Alexis of attempting to murder him and reclaims his stock; Mark is hired as Alexis' bodyguard; Dex Dexter, the son of a board member, proposes he and Alexis form a business alliance.
Adam frames Alexis for the poisoning incident, and Blake threatens to take the story public; Mark attacks Krystle; Denver-Carrington's publicist Tracy is disappointed that Krystle has been appointed department head.
Steven and Claudia marry, and the judge dismisses the custody suit; Blake offers Krystle a public relations job; Adam tricks Alexis into signing blank documents; Fallon and Jeff uncover evidence suggesting Adam may have poisoned Jeff.
As the custody trial continues, Fallon testifies on her brother's behalf while Sammy Jo defames her ex-husband. Fallon leaves for Montana to investigate Adam's past; Alexis' apartment is ransacked; Claudia hits on the scheme for Steven to retain custody of his son.
Kirby physically attacks Alexis, demanding to know the reason Joseph wanted her dead; at the trial for custody of little Danny, Alexis testifies against Bake, who erupts in anger.
Alexis recieves a note from the late Joseph--he set the fire with the intention of killing her; Claudia is released from the sanitarium; Steven and Blake fight over little Danny.
Mark is charged with attempted murder and arson; Alexis tells Blake and the police his motive was revenge. The other suspects-McVane, Hess and Adam, are questioned and released. After Alexis destroys Fallon's relationship with Mark, Krystle suggests she is seeking revenge because Mark rejected her.
Krystle and Alexis, trapped in a burning cabin far off in the woods, find the door has been locked--from the outside. Mark, who has come to see Krystle in this remote setting, dramatically rescues the two women, who are rushed to the hospital.