Gary and Val move to their new home in Knots Landing that Miss Ellie Bought for them, and then get acquainted with their new neighbors. Sid's 18-year-old rebellious daughter, Annie from a previous marraige, is visiting the Fairgates and is causing havoc among the family. Val attempts to fix Annie's relationship with her father.

Lilimae Clements, Val's mother, turns up in Knots Landing to visit her daughter. Valene confronts her over being abandoned as a child as Lilimae pursued her music career. As ghosts from the past come back to haunt the mother and daughter, they begin to put the past to rest.

Richard and Laura introduce Karen to a friend of theirs, Charles Linden, and she has her first date, but they don't get along. Kenny has Ginger make a demo tape for a song, and Andy Moore, another producer, encourages Ginger to pursue a singing career. Kenny's against this, and wants Ginger to stay home with the baby. When he finds out Ginger and Andy are working behind his back, he's not happy but Ginger decides to go ahead with it.

Val finishes a journal assignment about the Ewings for her class. Lilimae find and reads it, then gives it to Abby who shows it to Joe. Joe thinks it's publishable and sends it to a publisher. When Val finds out, she is both furious and flattered. Gary thinks it is a scam and runs off to work on Methanol with Abby. Laura tells Richard she is pregnant, but is going to get an abortion and leave him because she doesn't love him anymore. Richard convinces Laura to keep the baby and that he will change, and starts pampering her and being really nice, which only irritates her. Richard is very sincere about wanting to change, and tells Karen how excited he is about the baby. When he gets home, Laura has left him.

Gary really wants to get Val back, and even Lilimae tries to get them back together, but Val refuses to speak to him. Karen tells Mac that she suspects Wayne caused Sid's death and she wants to trap him. Wayne and Marshall exclude Angelo from their parts of the deal. Richard decides to open a restaurant, and Laura is supportive. Gary sees Ciji Dunne, a singer, rehearsing, and is entranced. He takes the Wards to see her and Kenny is really impressed and wants to do a demo with her. Ginger is jealous.

Gary and Abby go to Greg's fundraiser and Gary donates money to him. Val and Ben are there, and she introduces Gary and Ben. Greg asks Mac to head up his crime commission. Karen and Eric go to the ranch to see Diana. Diana goes off on Karen, and Eric slaps Diana. Lilimae tries to convince both Chip and Diana to testify that he killed Ciji, because he has to pay for his crime. Janet tells Lilimae that since Chip won't confess and Diana won't testify, they don't have enough to hold Chip and he'll be released the next day. Lilimae decides to try and talk to him one last time, and brings Karen to talk to Diana. As they pull up, Chip has already been released and is talking to reporters. Lilimae revs the gas and hits Chip with her car.