Recovering from Sean's attempted murder on her life and his subsequent death, Alexis and Dex flee to Los Angeles. There, they regain the passion they once had. Jeff tries to keep Sammy Jo from entering his room after he and Fallon have just made love
Sammy Jo and Jeff are relieved to discover the body they found in the lake is not Krystle, but the mystery of how she is involved still haunts them. Krystle's car is found in Harmon Springs and the man responsible for stealing it is a convicted murderer. Frustrated by the bizarre elements involved in Krystle's disappearance, Blake is both relieved and confused when Krystle's sister, Virginia, informs him that Krystle is with her
Finding Krystle and her sister, Virginia, talking, Blake is pleased to see Krystle well, but remains distressed when she has no recollection of how she got to Dayton. Fearing she will react badly to the news that she may be involved with a murder, Blake keeps the truth from her when they return to Denver. Adam persuades Steven's secretary, Claire Tennyson, to work for him, hoping she will reveal some of Steven's secrets
Blake entrusts Jeff with Steven's share of leadership in Denver-Carrington. Devastated by Blake's reliance on Jeff, Adam schemes to gain control of Denver-Carrington. Making light of Sammy Jo's objections to him working closely with Fallon, Jeff playfully teases her
Returning from her trip to Natumbe, Alexis is greeted by Dex and his gloomy prognosis for Colbyco. Desperate to liquefy her assets, she makes plans to sell the Carlton Hotel and the Vitron tankers, as the realization she may lose everything finally hits her. Finding out about Fallon's one night stand with Jeff, Sammy Jo squares off with Fallon
Taking the picture of Blake standing with the young man found floating in the lake, Fallon sets up an appointment with Sergeant Zorelli to view the corpse. Krystle undergoes more tests to determine her reaction to a new drug. Virginia joins Blake and Krystle at the hospital
Blake is furious at Fallon for showing the picture of Roger Grimes to Alexis. Overhearing his tirade, Krystle is uncertain why Blake is so concerned by the picture. After Alexis vows to make Blake suffer for killing Roger Grimes, Dex is convinced that she still harbors feelings for Roger
Krystle agrees to the operation only after Blake reluctantly signs her divorce papers and living will, to be enacted if the surgery is not a success. Virginia tells Krystle of her troubled youth after their mother left her. Krystle invites Sable to dinner and their friendship continues to grow
Blake returns from Switzerland with news about Kryslte. Fallon and Zorelli get more involved. Sable and Jeff argue about her intentions with Blake
Following their passionate love making, Zorelli suspects Fallon is merely trying to influence him to drop the Roger Grimes case. After Virginia storms from Dex's room, leaving behind pictures of them together from a happier time, Dex is left stunned by the uncanny turn of events. Blake orders Zorelli to stay away from Fallon
Jeff pulls Sammy Jo from the burning barn, and Gibson is taken into custody. Sammy Jo recognizes Gibson as the man Krystle saw in her nightmares. Blake worries that Gibson is involved in trying to uncover his family secret
Irate after Sable gains control of her ships, Alexis hires one of Adam's unsavory friends, the handsome and intriguing Cray Boyd, to get them back. Running into Hamilton Stone at the Carlton, Alexis promises to make him pay dearly for double crossing her. Shaken by her threats, Stone ponders the damage she could cause
Sable meets with Blake and Dex to explain she was searching the lake to discover what her ex-husband, Jason, was determined to keep hidden. She assures them that she had no idea Blake and Dex would be harmed by uncovering the secret that lay hidden there. Dex is intrigued by her honesty
Sable is able to maintain a calm facade and convince Heath to put the gun down so they can talk. Agreeing, and feeling more at ease, Heath talks about how Sable can ruin Colbyco. After Heath leaves, Sable is still in shock from her close encounter with death
Seeing the disarray of Denver-Carrington, Blake resumes control of the company. His first act is to fire Adam. Appreciating Joanna's knowledge of Sable's affairs, Adam tries to charm her into working for him and Alexis
Joanna agrees to tell Adam everything she knows about Sable, in exchange for his protection. Upon Alexis' return to Denver, Blake confronts her about the ad asking for information on Roger Grimes. She reasserts her vow to see him pay for Grimes' murder
Alexis is emotionally crushed by Dex's affair with Sable. She sends Adam to try and make up with Blake, so she can have a set of ears in his camp. Blake and Sable renew their bonds of friendship
Blake and Jeff are stunned when Dex finds the hidden vault beneath the lake completely empty. Returning from the lake, Jeff finds Sammy Jo waiting for him in his bed. Blake asks Sable to try and find out any information Alexis may know about the vanished treasure
Captain Handler, suspecting Blake may have killed Chisolm, puts Zorelli back on the Grimes case, despite Zorelli's belief that Blake is innocent. Blake accuses Adam of setting him up to look like he killed Chisolm. Learning that Alexis is having her painting appraised, Sable convinces the appraiser to tell Alexis the painting is worthless
Another skeleton is discovered buried in the tunnel beneath the mansion. Blake is convinced that whoever else is looking for the treasure also killed Elsworth. He gives Dex and Jeff one week to meet with Roger Grimes' widow, Emily, before he reveals their tangled secret to the police
Convinced that someone is trying to frame him for Chisolm's murder, Blake turns to Charles Matthews for answers to his father's mysterious past. Matthews tells Blake a dark secret that leaves Blake in a daze. Zorelli finds a bug in his apartment, which Dennis Grimes, and Captain Handler planted
Blake tells Alexis that Charles Matthews knew about Fallon's childhood nightmare. Matthews also knew that Blake's father, Tom Carrington, covered up the incident. Alexis blackmails Blake for half of the plundered Nazi treasure