The big, wealthy oil tycoon Blake Carrington and his former secretary, Krystle Grant Jennings are getting married. Krystle's ex-boyfriend, Matthew Blaisdel, who's been working as a geologist on one of Blake's oil rigs in the Mideast for a year and a half

Matthew gets a little visit from an old acquaintance, Walter Lankershim. Walter asks for money, because he's in trouble. He's lent money from Blake to drill for oil, but he haven't made any strikes. Matthew refuses to give him any money. Matthew goes to visit his present wife, Claudia, who's been in a mental institution for 18 months, but he learns that she's much better, and she's been released. Matthew, Claudia and their daughter, Lindsay, decides to start over again as a family. Blake and Krystle get to talk about their disagreements, and starts planning a big wedding. There's an accident on Walter's oil rig and he finds out that somebody has been sabotaging. He's convinced that Carrington has something to do with this.

Blake and Krystle finally get married. Blake talks a bit with his son about the homosexuality. There's a big wedding at the mansion, and among the guests are Cecil Colby and his nephew Jeffrey Broderick ""Jeff"" Colby. Cecil is a big oilman like Blake, but he's much bigger, and Blake's company, Denver-Carrington, is just a newsstand compared to Cecil's ColbyCo Oil. Walter blurs into the big wedding, furious about the sabotage on his rig. He and Blake fight about this, and Matthew takes Walter's side in the fight, which leads to Blake firing Matthew.

Blake and Krystle have to break off their honeymoon, because Blake's in a bit of a crisis at work, and he has to go home to do business. Walter gets in trouble with the workers on his rig, but he gets it all straightened out, and both Matthew and Steven get a job there. Blake doesn't like this. Krystle has problems getting along as a wealthy woman, with all the servants and the money. Matthew and Claudia fight alot, they both think it's difficult to start this new life. Cecil and Fallon have negotiations of their own. Cecil is going to help Blake out of his problems, if Fallon marries Jeff.

Blake apologizes to Walter and Matthew about their fight at the wedding and asks Matthew to come back to his old job. He also invites them to a dinner party at the mansion. During the dinner, many things happen; Steven and Claudia meet and get along really well, Matthew has a long talk with Krystle and tells her that he's still in love with her, and Cecil and Fallon start realizing their plans. Cecil offers to help Blake and Fallon starts hitting on Jeff.

Cecil helps Blake with his money problems. Jeff and Fallon get married. Blake's driver, Michael Culhane, who's been sleeping with Fallon, is a bit jealous, because she won't take him anymore. Blake hires him to do undercover work for Denver-Carrington, and he starts flirting with Cecil's secretary. Blake warns him about being unloyal. Steven gets a visit from his gay friend, Ted Dinard, from New York.

Michael still tries to win back Fallon and tells Blake about Cecil and Fallon's agreement. Blake and Fallon argues about this. Steven is taunted on the job for being gay. Lindsay has a boy over to study, he tries to put the moves on her and she gets upset and runs off. Blake wants to have a child with Krystle. Matthew invites Steven to a dinner party at his house. In the end Steven and Claudia secretly start kissing.

Walter takes Steven to a bordello to try to ""straighten him out"". Something goes wrong at Matthew and Walter's rig, Steven is blamed for sabotaging, and though he's innocent, he looses his job. Blake's plan now is to take Walter and Matthew's rig when they're in trouble. Krystle doesn't like Blake's methods in his work. She pawns an emerald necklace and loans Matthew the money to help him. She makes a false copy so Blake won't understand it's gone. In the end, Matthew and Krystle kiss, but Krystle breaks it off and leaves.

Matthew finds the guy who really sabotaged the rig. Steven is offered his job back, but turns it down. Claudia learns about Matthew's relationship with Krystle. Lindsay is upset, thinking that her parents HAD to get married just because of her when she was born. Steven's boyfriend Ted tries to contact him, but Fallon does everything she can to stop it and keep them apart. Blake finds out that Krystle is on birth control pills and assumes she's not interested in having a baby. He gets both mad and drunk and forces Krystle to a rough sexual intercourse.

Blake apologizes to Krystle about his behavior, and she forgives him. Michael has found out about Krystle's pawning and tells it to Fallon. Matthew and Walter finally strike oil. Claudia goes out with a guy she meets and almost has an affair with him. She manages to pull out, but later she has an affair with Steven. Lindsay starts finding out about it.

Jeff comes home after being in the Middle East, but he and Fallon have lots of arguments. Steven decides to get some more education and to start working for Blake, and he moves to his own apartment. Blake finds out about Michael's relationship with Fallon and hires some people to beat him up. Lindsay finds out everything about her mother's affair, which is still going on.

Blake learns about Krystle's ""pawning"". He doesn't tell her, but he starts frightening her with hints. Jeff now knows that his marriage to Fallon is only a part of a deal, and he does everything to embarrass his wife. Especially during a birthday party Blake throws for Cecil, when he yells out to everybody what he thinks of them. Ted still tries to get into Steven's life again. Matthew manages to pay the money back to Krystle, and she wants to buy her necklace back, but the pawner has already sold it.

The butler, Joseph Aynders, shows Krystle that he doesn't like her, and he means she doesn't belong in the Carrington family. Krystle understands that Blake is the one who bought the necklace, to show her that he had found out. They have a little argument about this, and Krystle decides that life with Blake is impossible and leaves him. Steven tells Claudia he spent the night with Ted, but now he wants to quit his relationship with both of them. Steven and Ted are just saying good-bye and hugging each other when Blake discovers it. He gets furious, because ""the gay"" is now standing there in his house with his arms on his son. He attacks Ted and there's a fight. Ted trips, hits his head, and dies.

Blake is arrested for the murder of Ted, and a big trial comes up. The prosecutor is Jake Dunham, an old friend of Claudia and Matthew, who does not like Blake. Krystle hears about the trial and decides to come back to Blake to be with him, and then solve their problems later. Fallon is afraid and to help her father, and she lies in court. Steven tells the truth about what really happened, though.

Blake's trial continues. Both Joseph, Claudia and Krystle have to testify. When Claudia testifies, she has to tell that she had an affair with Steven, and then Matthew finds out about it. He makes rebellion in the court room, attacks Blake and has to go to jail. Claudia packs her stuff, runs away, and takes Lindsay with her. On the way, they collide and get serious injuries. In the final scene, Jake Dunham calls in a new witness, and in walks a mysterious woman. It turns out to be Alexis Morrell Carrington - Blake's first wife.

Alexis testifies against Blake, and tells about an incident several years ago, when Blake discovered her in bed with her lover, Roger Grimes. Her testimony proves that Blake is a violent man, and things doesn't look too good. Fallon and Blake welcome Alexis with hate and rudeness, but Steven is friendly to her. Claudia wakes up in the hospital and discovers that Matthew has run off with Lindsay.

Blake is convicted to two years unconditional prison. Blake first wants to appeal, but changes his mind. We can now see the first sign of Alexis being the ""big bitch"" in the series. Both she and Blake hate each other, and she decides to move into an old house which once belonged to her in Blake's garden. Blake fires Michael. Claudia tries to track down Lindsay and Matthew, but with no luck. Blake tries to talk to Steven, but it ends with a fight. Krystle discovers she's pregnant.

Claudia is released from the hospital. When she comes home, she tries to kill herself by taking an overdose with pills, but she's saved by Blake's friend, dr. Nick Toscanni. It turns out that Nick's secret plan is to get back at Blake for something that happened in the past. Fallon and Jeff decides they want to have a baby. Claudia moves into the Carrington mansion. Blake tries to get Alexis out of his property. Alexis tells Steven that he is Blake's only child and that Fallon's father is another man.

In order to save his football team and repay the $9 million to Cecil Colby, Blake flies to Las Vegas and obtains a loan from gangster Logan Rhinewood. Nick tells his sister that Blake is to blame for the death of their kid brother, who hanged himself in jail. He intends to find proof and claim vengeance. Sammy Jo has a nightmare and goes to Steven for comfort. In the morning, Alexis sees her leaving and promptly tells Krystle that the two spent the night together. When Alexis suggests that Steven, once again his father's heir, should consider marrying, he asks Claudia to give some thought to a future together. Fallon and Nick make love. While skeet shooting, Alexis spots a pregnant Krystle riding her horse. She fires, and the frightened animal throws Krystle

After losing her baby due to the fall from her horse, Krystle learns she cannot have another child. Steven and Sammy Jo begin dating, but at his cabin, he finds he cannot make love to her. Jeff quits his Uncle Cecil's business and joins Denver-Carrington. Fallon continues her affair with Nick Toscanni. Steven professes his love to Claudia and asks her to marry him. She declines, stating she's still in love with her husband. Fallon interrupts Nick's visit to Krystle in the hospital and angrily assumes the worst, demanding to know if she is ""another page in his appointment book."" Blake's attorney, Andrew Laird, returns from Washington with news of more trouble with the Middle Eastern oil leases.

In order to save his football team and repay the $9 million to Cecil Colby, Blake flies to Las Vegas and obtains a loan from gangster Logan Rhinewood. Nick tells his sister that Blake is to blame for the death of their kid brother, who hanged himself in jail. He intends to find proof and claim vengeance. Sammy Jo has a nightmare and goes to Steven for comfort. In the morning, Alexis sees her leaving and promptly tells Krystle that the two spent the night together. When Alexis suggests that Steven, once again his father's heir, should consider marrying, he asks Claudia to give some thought to a future together. Fallon and Nick make love. While skeet shooting, Alexis spots a pregnant Krystle riding her horse. She fires, and the frightened animal throws Krystle to the ground. She is rushed to the hospital, in danger of losing the child.

After losing her baby due to the fall from her horse, Krystle learns she cannot have another child. Steven and Sammy Jo begin dating, but at his cabin, he finds he cannot make love to her. Jeff quits his Uncle Cecil's business and joins Denver-Carrington. Fallon continues her affair with Nick Toscanni. Steven professes his love to Claudia and asks her to marry him. She declines, stating she's still in love with her husband. Fallon interrupts Nick's visit to Krystle in the hospital and angrily assumes the worst, demanding to know if she is "another page in his appointment book." Blake's attorney, Andrew Laird, returns from Washington with news of more trouble with the Middle Eastern oil leases.

Blake and Jeff attempt to arrange a meeting with Rashid Ahmed to obtain assistance in releasing their overseas oil tankers. Alexis leaves for Rome to meet Ahmed, a former lover, under the guise of helping Blake. A despondent Krystle refuses Nick's psychiatric treatment. Claudia has recovered sufficiently to maintain her own apartment and take a job with Denver-Carrington. Cecil Colby invites her to dinner to pry company information from her. Fallon, learning she is pregnant, makes plans for an abortion and asks Jeff for a divorce. He agrees, but only after she has their baby. Fallon tells Nick she is in love with him. Alexis calls Blake to Rome, explaining she has arranged a meeting with Ahmed. Her true motive is simply to be alone with her former husband.

En route to Rome to meet Rashid Ahmed, Blake calls Krystle in yet another attempt to convince his despondent wife to see psychiatrist Nick Toscanni. She calls the doctor for an appointment, and Fallon is immediately jealous. Jeff begs Fallon to cancel her abortion. She confesses that she became pregnant only to compete with Krystle and further states she never loved him. Their marriage was strictly a business deal to benefit Blake. In Rome, Blake meets Alexis at Ahmed's villa. While he's rubbing suntan lotion on his ex-wife, a photographer, hired by Alexis, snaps photos. At home, a shattered Krystle sees the suggestive pictures in a gossip paper and bursts into tears. Nick comforts her and her grief soon turns to passion.

Krystle almost sleeps with Nick, but stops the whole thing. Nick says he's in love with her, and that he wants her, but she won't cheat on her husband. Blake comes home and tries to tell her the paparazzi photo is not what it looks like, but she won't believe him. Jeff is angry with Fallon because of her abortion plans and wants to divorce her. Fallon cancels the abortion. Steven and Sammy Jo get married, and Steven decides he's interested in car racing.

Steven and Sammy Jo return to the mansion and tell everybody except Blake that they are married. We get the impression that Sammy Jo only married Steven for his money. Alexis does everything she can to make Krystle think Blake had an affair in Rome. Nick tells Krystle he's deeply in love with her and persuades her to leave Blake. Ray Bonning, who represents Rhinewood starts interfering in the way Blake controls his team and wants to buy the whole of it. In the end, a car drives by Blake and Jeff and someone throws a bomb at them. They survive, but it leads to blindness for Blake.

Blake is frustrated because of the blindness. He's also sure that Bonning is behind the bomb attack and settles plans to get revenge. Krystle wants to wait with telling Blake about her divorce plans until he's better. Blake wants Fallon and Jeff to be friends and stay together and have their baby in peace. Fallon tells Alexis about her affair with Nick, and that she's deeply in love with him. She's also found out about Krystle's relationship with Nick and Alexis is going to help her get Krystle out of their lives.

Blake has been doing some research on Nick and finds out that Nick's brother Giani worked for Denver-Carrington, but was killed in the Mideast problems. Alexis starts trying to help Fallon in her ""battle"" against Krystle but Fallon doesn't want her help. Blake goes to a kind of trial against Logan Rhinewood, but with no luck. Fallon and Jeff are not getting along; Jeff doesn't care about Fallon, and Fallon is deeply in love with Nick. Blake gets an anonymous letter saying: ""Why do so many frustrated wives end up in bed with their shrinks? Ask your wife."" Blake also gets his sight back, but the only one who gets to know about it is Joseph.

Blake pretends he's still blind. Everything about Nick and Krystle is out in the open. Blake and Nick talks about the death of Nick's brother. Krystle brakes up with Nick and plans to leave Denver. Sammy Jo starts taking advantage of being a ""rich mans wife"". Blake does not like the idea of Steven being a racer driver and offers to adopt Jeff. Cecil, who has been helping Claudia finding Lindsay blackmails her to get information from Denver-Carrington if she wants to get more information. Blake persuades Krystle to stay in Denver when she tries to leave.

Blake announces that his sight is back. Alexis sleeps with Cecil. Fallon and Nick are friends again and wants to be together as soon as the baby is born. Steven and Sammy Jo decides to leave the mansion. Fallon and Alexis throws a party for them. Sammy Jo gets drunk and embarrasses the Carringtons. Claudia and Jeff seems to be getting good along. Everything about Cecil being Fallon's father is out in the open between Alexis and Fallon. In the end, Alexis and Fallon has an accident with their car and Fallon is left unconscious.

Fallon is brought to the hospital and gives birth to a boy. The baby is very weak and the chances for survival are small. Fallon is deeply depressed after finding out about Blake not being her father, and doesn't want to see nor Blake or Alexis. Claudia sleeps with Jeff and steals his key to the archive in Blake's Denver-Carrington. Krystle talks to the groundsman at the mansion and finds out about Alexis' shooting when she lost the baby. Alexis and Krystle have a real ""catfight"" in Alexis' studio. Alexis' detective, Morgan Hess finds out that Krystle is not legally divorced from her former husband, Mark Jennings. Sammy Jo leaves Steven.

Fallon and Jeff's baby has a surgery and things are looking better. Jeff discovers Claudia's ""leak"" to Cecil. Matthew and Lindsay disappears without trace in the jungle. Blake finds out about all the ""father"" trouble. Alexis blackmails the groundsman to tell Krystle he was wrong about Alexis shooting the horse, though Krystle won't believe him. Fallon and Jeff argues about custody of their child.

Blake gets a meeting with Logan Rhinewood set up. Steven goes to Hollywood and finds Sammy Jo modeling in a cheap studio. Blake and Cecil takes a blood test and it proves that Blake is Fallon's real father. Alexis and Cecil start flirting with each other. The last news about Matthew and Lindsay is that they are dead. When Claudia finds out, she blames Cecil and wants to shoot him. Krystle tries to stop her, and in their struggle, the gun goes off.

Claudia is badly hurt after the shooting and has an operation at the hospital. The police starts asking questions and thinks Krystle is responsible for the accident. Blake finally gets to talk to Rhinewood, though it's just by using a microphone, so Blake can't see Rhinewood. What Blake doesn't know is that the man he's talking to really is Cecil. Cecil and Alexis sleeps with each other again and Cecil proposes to Alexis. Claudia survives but has talking problems and does not remember the accident.

Claudia keeps accusing Krystle about her relationship with Matthew during his marriage. Steven is on his way home from Hollywood when he picks up a guy who wants a ride to Denver. When they get there, the guy tries to blackmail Steven. Steven beats him up, and is arrested for assault. Cecil has chest pains and seems to be getting heart problems. Blake accuses Alexis of shooting at Krystle's horse and threatens her.

Fallon and Jeff's baby, Little-Blake Colby, is brought home. A nurse called Susan is hired to take care of him. Alexis accepts Cecil's proposal and they start making wedding plans. Claudia finally remembers exactly what happened the night she got injured. Rashid Ahmed wants to do more business with Blake.

Alexis prepares to have the wedding reception in Blake's garden. Rashid Ahmed's brother Farouk comes to Denver-Carrington to offer Blake a deal, but Blake turns it down. To get back at him, Farouk tells Nick that Blake is responsible for his brother's death. Steven leaves the mansion. Blake considers buying a big ranch and goes there with to look around. Blake goes alone for a ride in the mountains at the ranch. Nick follows him and starts accusing him for the brother's death. There's a big brawl, but they both calm down, and Nick leaves Blake alone. Blake's horse is then attacked by a snake. Blake gets thrown off and disappears down the hill. Nick watches Blake lying there unconscious, but leaves him. Little Blake disappears. Cecil has a heart attack when he's in bed with Alexis.

Krystle finds Blake in the mountains and gets him to the hospital. Nick Toscanni disappears. Cecil is also brought to the hospital, and he's very weak. A police investigation is started to find the baby. The suspects are: Farouk Ahmed, Nick Toscanni, nurse Susan, and an old cemetery worker called Alfred Grimes. Alexis wants to marry Cecil at the hospital when he's better. Blake recovers and to help with finding the baby he goes on TV with the whole family, and says he's give a reward to the one who can find little Blake. Alexis also stand forward and tells about their son, Adam, who was kidnapped when he was a baby. In Montana, Michael Torrance suddenly is told by his dying grandmother, that he really is Adam Alexander Carrington.

Michael goes to Denver to find out who he is. Alexis and Cecil plan a wedding in the hospital. Claudia disappears and Blake suspects her of kidnapping the baby. There's an exiting drama on the roof of a tall building. Claudia has the baby in her arms and refuses to give her away, thinking it's Lindsay. She finally throws the baby over the edge, but it turns out it was only a doll.

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 Miranda. She and Michael meet, but without knowing they may be brother and sister. Michael seeks Blake but Blake rejects him when he says he's his son. Cecil and Alexis get married in the hospital, but Cecil dies a few minutes after the ""ceremony"".

Cecil leaves his estate and ColbyCo to Jeff and Alexis. He also reveals his ""Rhinewood-game"" in his will. Blake suspects Alexis of being a part of it. Adam finds Alexis and shows her the silver rattle he had when he was kidnapped. Alexis believes him.

Alexis and Adam get good along in their mother-son relationship, and Alexis gives Adam a job in ColbyCo. Blake starts believing Adam is 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 gets a hold of Krystle's first husband Mark.

Blake tries to be friends with Adam, but Adam is rejecting. Alexis tells Mark that he's still married to Krystle. Mark seeks to get a job as a tennis pro at Fallon's hotel. Fallon is attracted to him, but she takes distance from him when she finds out he's Krystle's ex-husband. Jeff quits his job at ColbyCo and starts working for Alexis, and Adam does not like it. Joseph wants to quit his job at the mansion and go to his daughter, Kirby Alicia Aynders, in France, but Blake talks him into staying.

Kirby comes to stay with the Carringtons after breaking up with her fiancé in France. Joseph tries to persuade her to go back. Mark gets the job at Fallon's hotel. Blake tries to get help from congressman Neal McVane. Jeff and Adam has problems working together. Adam gets the hold of a toxic chemical mixture.

Fallon gets a letter from Steven and it turns out he's on an oil rig in Java Sea, Indonesia. Adam mixes the toxic compound in the paint for Jeff's new office. Fallon hires Kirby as a nanny for little Blake, and throws a big opening party for her hotel, which she now calls ""La Mirage"". In the party Alexis sleeps with McVane and tries to stop him from helping Blake, but Blake gets the upper hand. Mark tells Krystle about their unfinished marriage. Fallon and Mark dances and falls in the pool where they start kissing. Adam comes on to Kirby and she tries to get away from him. Jeff rescues her and they end up kissing.

Jeff starts being dizzy and affected by the painting in his office. Joseph tells Kirby to stay away from Jeff. Krystle goes to Acapulco to find out what really happened when they had they so-called divorce. Blake comes after her to be with her and support her. They finish the case, the divorce will be legal, and Blake and Krystle's marriage will be valid. The oil rig Steven works on explodes.

Everybody hears about the explosion and it looks like Steven is dead, though Blake goes to look for him. Alexis follows Blake. Sammy Jo's father comes to Krystle to collect Sammy Jo's share of Steven's inheritance, but Krystle throws him out. Joseph comes to Jeff's office and tells him to stay away from Kirby. Jeff is infected by the toxic paint and attacks Joseph. Mark continues to contact Krystle, who tries to get him out of her life. Blake finds out about all the contact between Krystle and Mark and is jealous.

Alexis and Blake continues the search for Steven together with Dan Cassidy, who worked at the rig, and finds more signs of Steven being dead. Blake refuses to believe it, and hires a psychic, Jason Denner, to help. Jeff gets really ill from the paint in his office. Adam rapes Kirby. Frank surprises Krystle outside La Mirage, still wanting the money, but Mark beats him up, and then bribes him to get him away.

Back in Denver, Blake continues his frantic search for Steven with the help of psychic Jason Dehner. Blake refuses to believe his son is dead, and Krystle is worried about his erratic behavior. Seeing how much she loves Blake, Fallon reconciles with Krystle. Blake refuses to attend the memorial service Alexis has arranged for their son. Alexis seduces Mark. Sammy Jo, now preferring to be called Samantha, appears at the Carrington household with a baby. The child is Steven's son.

An obviously ill Jeff continues to function in a confused state. Sammy Jo announces she's headed for New York to make it big as a model and no longer wants to keep her son, Danny. Blake offers the girl $100,000 to be a mother to the child, but she declines. Alexis betters the offer and is also turned down. Krystle and Blake are overjoyed to learn Sammy Jo wants them to be Danny's adoptive parents. Alexis continues her affair with Mark. Steven, alive in a Singapore hospital with his face bandaged, regains consciousness. The doctor explains that severe burns incurred in the oil rig explosion necessitated plastic surgery.

Jeff's temper continues to grow more volatile. Adam attempts to implicate Jeff in the Cecil Colby/Logan Rhinewood scandal. After learning that Blake and Krystle intend to adopt Steven's son Danny, Alexis demands custody of her grandson. Because Krystle's divorce from Mark is not yet finalized, Blake explains they must wait two months before adopting the child. Finding Fallon alone in Mark's hotel room, Jeff attacks his wife, calling her a whore. Mark arrives and rescues her. Concerned with his erratic behavior, Alexis decides to send Jeff away on vacation. Adam confesses to his mother that he's had Jeff's office painted with a lethal compound. He warns her that if she tries to remove it he'll implicate her in his scheme.

Although Blake begs her to postpone taking action until Jeff's violent behavior can be explained. Fallon flies to Haiti to obtain a divorce; Mark shows up unexpectedly at her hotel. Adam asks Kirby to work for him; Alexis tells Adam she cannot allow Jeff to be poisoned. In his confused state Jeff signs over his son's shares of Denver-Carrington to Colbyco, and his own voting control to Alexis: Alexis is now in a position to control Blake's company. Jeff angrily confronts Mark on the tennis court, where he collapses and is hospitalized. Alexis worries the doctors will discover the poison in his system.

Alexis, concerned the doctors will learn the truth behind Jeff's illness, orders his office to be remodeled and the lethal paint compound removed. Mark and Fallon make love in Haiti; Blake learns Alexis is planning to orchestrate a Denver-Carrington/Colbyco merger to control both companies. Dr. Edwards, a physician who cared for Adam in his younger days, arrives in Denver to see his former patient, a one-time drug user. In the Singapore hospital, Steven's bandages are removed and he is handed a mirror. Blake is stunned to learn the hospital has found poison in Jeff's bloodstream.

Krystle suspects Alexis knows the reason for Jeff's illness and tells Blake, who is busy obtaining an injunction to prevent his ex-wife from taking over his company. Jeff is discharged from the hospital; the poison in his body still not identified. Mark and Fallon return from Haiti, and Kirby observes them kissing passionately in the mansion's entryway. Kirby fantasizes making love with Jeff. In Singapore, Steven's secretiveness continues to arouse Dr. Chen's curiosity. Blake receives a call from Singapore and learns Steven may have been found.

As Blake is departing for Singapore to identify his son, Alexis intercepts him at the airport to assure him she will not be stopped from merging their respective companies. Despite Alexis' efforts, however, Blake is assured of Congressman McVane's help in stalling official approval of the move. Jeff tells Alexis he was mistaken in signing over his stock and wants to retract the action; Adam lures Kirby to a hotel and attacks her. Jeff arrives to rescue Kirby and in a passionate moment, asks her to marry him. In Singapore, Steven tells his father he has broken from the family and will not return to Denver...until Blake tells him he is father to an infant son at the Carrington mansion.

Excitement brews in the Carrington household as-preparations are made for Steven's return. It is an emotional moment as Alexis, Fallon and Krystle embrace Steven, who is introduced to his brother Adam and son Danny. Jeff and Kirby are married in Reno; plans are underway to finalize the Denver-Carrington/Colbyco merger. Fallon and Mark continue their affair; Alexis confesses to Steven that she paid Sammy Jo to get out of Denver, and that she suspects Blake 'bought' little Danny from the girl. Steven heads to New York to find his wife.

Upon hearing that Kirby has married Jeff, Joseph tells his daughter she has ruined her life. Blake suggests to Alexis they call a truce to their battle over Steven; Alexis offers Steven a share in Colbyco. Adam informs Fallon he doesn't consider Steven emotionally capable of handling the family business. After discussing the possibility of a reconciliation with Sammy Jo, Steven returns from New York alone. Blake disapproves of his son's plans to move out of the mansion with little Danny, but Krystle insists he let him go to prevent further alienation.

As the Board of Directors gathers to vote on the Denver-Carrington/Colbyco merger, Alexis pointedly tells the group that a nay vote will be met with immediate dismissal. The approval of the motion sends Blake into a fury. Kirby is upset to find Jeff and Fallon laughing together; Krystle comforts her, and also tries to patch up relations between Steven and Blake. Jeff accuses Adam of falsifying reports regarding Denver-Carrington; Alexis warns Fallon of Mark's history as a gigolo. Alexis learns Congressman McVane has managed to block the merger; outraged, she spills her knowledge of his scandalous past to the press.

Blake confronts Alexis with evidence of fraudulent figures involved in the recent merger; Alexis learns Blake's lucrative oil extraction process does not extend to Colbyco. Newlyweds Jeff and Kirby have their first fight; Steven visits Claudia at the High Meadow Sanitarium. Alexis offers Mark money to leave Fallon; he refuses. Later. Fallon finds her mother in Mark's bed, undressed. Krystle arranges a dinner to improve relations between Steven and Blake; Alexis interferes and sees that Steven is out of town, unable to attend. Blake insists his absence is due to hostility and Krystle, incensed at her husband's insensitivity, storms off.

A scandalous newspaper headline implicates Congressman McVane with a young girl in Washington; he realizes Alexis orchestrated his downfall. Kirby finds she is pregnant; Adam is alarmed to learn that his former physician, Dr. Billings, lS soon due in Denver for a convention. Krystle and Alexis argue over Fallon, and the discussion quickly disintegrates into a brawl: The two fall into the lily pond flailing and punching. Blake approaches and pulls them apart, likening the women to 'common mud wrestlers.' Humiliated, Krystle packs her bags and checks into La Mirage. Alexis demands Joseph drain the pond and retrieve the diamond earring she lost in the scuffle, and threatens to tell Kirby the truth about her mother if he does not cooperate. A ruined McVane appears in Alexis' office after hours and threatens to kill her.

When Blake learns Steven's attorney Chris has moved in with his son, he vows to fight for custody of little Danny. Morgan Hess, Alexis' private investigator asks his employer for a large sum of money to payoff a gambling debt; when Alexis refuses, Hess leaves with a threat. Kirby realizes her baby was fathered by Adam. Fallon meets with Adam's former physician, Dr. Edwards, who tells her of Adam's temper and underlines his brilliance: He once won a case by proving a plant worker was poisoned and driven insane by chemical fumes. Realizing the connection to Jeff's illness, Fallon asks the hospital to investigate. Alexis tricks Krystle into meeting her at Steven's cabin, where she offers her $1 million to leave Blake. Outraged, Krystle rises to leave, but the door will not open--someone has bolted it shut from the outside, and smoke is pouring in from under the door........