Senator Ryder is intent on killing Richard and kidnapping Maggie. Convinced that Senator Ryder's brother John is responsible for the killing of The Thirteen, Richard discovers the secret method by which Ryder and John contact each other. As Richard waits in a park for John, he doesn't know that the senator has already killed his brother and is at Richard's house.

After Angela blackmails Nick with incriminating information about his past, Nick surrenders Falcon Crest to Angela. While Angela makes plans to rebuild the house, Nick regrets his deference to her and warns that he will not bend in the future. Nick decides to tell Ben the truth about his mother, which enrages the young man. Richard's newspaper prints the fact that Melissa had placed a phone call after Lance's departure, proving that Lance is innocent of her death. Richard warns Pilar not to let her affair with Lance interfere with Richard's takeover of the valley. When Frank's old friend Libby appears, Nick and Ben are surprised. Libby requests Frank to join her in Columbia to mine emeralds, which is an offer that disturbs Angela. As Emma and Cabot begin an intimate relationship, Cabot questions her true identity.

As Christmas arrives in Tuscany Valley, Frank agonizes over whether or not to leave his family to mine emeralds with Libby. Ben turns against Nick for lying to him about his mother. Unaware of Richard's assistance, Maggie is delighted with the overwhelming response to her special advertising offer. Richard offers to back Pilar's failing consortium through a blind company for a controlling interest. When Daniel Cabot discovers Emma's true identity, he abandons her. Although Angela celebrates the holiday by surrounding herself with family, Pilar's holiday is spoiled when she spots her brothers Tommy and Paco being chased by security officers. However, Christmas dinner at Pilar's home brings Nick and Ben closer together and Nick to admit his love for his father.

As Angela continues to press for information on the consortium, Pilar divulges surprising news to Lance. After Angela follows the paper trail leading from the consortium to Richard's company, she confronts Richard. Making peace, Nick and Anna reach an accord about Ben. In conclusion, Pilar drops a bombshell piece of news on Lance: he is Lisa's father.

Despite Angela's obvious opposition, Lance and Pilar decide to marry. Maggie, appalled at Richard's plans for the valley, leaves him. Hoping to prevent Lance and Pilar's marriage, Angela, who has made a deal with Sinclair, tells Lance that Pilar was well aware of Richard's business dealings; however, Pilar convinces him otherwise, and the wedding is definitely on. After Nick learns the seriousness of Anna's condition, he convinces her to allow him and Ben to care for her, provided that Ben not be told of her illness. After Raoul and his gang run Ben and Gabriel off the road, the gang leaves them unconscious on the roadside.