Upon his return to the Tuscany Valley, Wainwright, already keenly interested with the Giobertis, also becomes interested in Vicky. Angela's suspicion and the arrival of a detective jeopardize Kit Marlowe's masquerade. When Angela adds the valley's plush spa to her holdings, she learns that an unexpected source threatens her anticipated hold on the Agretti grape harvest. When Tony Cumson returns to the valley, he is appalled at the condition of his former wife, Julia, as Angela moves quickly to keep him out of the family.

While Maggie confesses the reasons for her distress to Chase, Wainwright changes his tactics to ingratiate himself with their daughter, Vicky. When Richard Channing discovers Kit's secret, he is able to use it to his advantage. Lance and Melissa find a common bond. Tony Cumson tries to reconcile his father-son relationship with Lance, but the wounds are too deep. Angela hosts a party for the opening of her spa.

After Vicky slips from his grasp, Wainwright returns to the valley and forces his way into the Agretti's house, attacking Chase in his pursuit of Maggie. When Lance can no longer compete with Angela's preoccupation with Dan Fixx, he surprises his grandmother with a new venture. Angela explains to Peter why she is taking such care of Dan, even after The New Globe reveals him as an ex-convict. At the last minute, Richard springs his trap on Miss Jones to save Chase's life. Cole disapproves of his father's new partnership with Tony Cumson. Kit tries to intercede in the matter of Angela's stolen checks because of the pain it is causing Peter.

While Chase buries himself in his business deals and his political campaign, Maggie agonizes over the problems of her children, but mostly about her baby. While Cole takes his unhappiness out on his family, Vicky grows closer to Dan Fixx. With her paternity tests inconclusive, Maggie's fears increase along with her determination. Chase and Tony discover that their vines are withering. Angela and Lance fight over his association with The Globe and her obsession with Dan Fixx. Meredith starts her seduction of Richard Channing. Lance conspires with Karlotti to take over Emma's stock certificates in The New Globe. A hit man sees through Kit's disguise.

Maggie's determination to keep her baby, regardless of the consequences, further alienates her from her family. Cole is adamant about leading his life away from the family, and Maggie has no choice but to give him her blessing. Vicki goes to see Dan Fixx, whom her parents disapprove. Chase accepts his wife's views on her upcoming motherhood. Angela attends Karlotti's seance, which is instrumental in giving Lance control of Emma's holdings. Chase and Tony discover vineyards contaminated from the dumping at Tuscany Downs, with evidence pointing to Angela's conspiracy to ruin her rivals. Fixx confides in Vicky. Lance moves to take over The Globe.

As Maggie fights her loneliness, Chase struggles to save his vineyards, and Angela strives for her freedom. Vicky allows her parent's problems to affect her relationship with Dan Fixx. As Chase's marital problems reflect on his campaign for county supervisor, he and Maggie face the facts about their troubled marriage. Even though Peter is troubled over Angela's innocence or guilt, he loyally stands by her. Richard is determined to defeat Lance's attempt at a takeover of The New Globe as the specter of Miss Jones begins to haunt him. Kit succumbs to Tony's charm, but is terrorized by Stafford.

Due to his past manipulations of Melissa's life, Lance's attempt to win control of The New Globe backfires. Richard overcomes Lance's ploy to control The New Globe by producing the man who framed Melissa, who demands that Lance move out. Emma brings Karlotti home to trace Wayne's spirit and begins to transfer her affections to the medium. Angela begins to believe that Lance framed her. Kit is reluctant to leave Tony for Guy and his plans of a fake suicide. Dan is able to break through Vicky's defenses. Maggie observes Chase's victory kiss from Gwen and has complications with her pregnancy.

Preparing to disappear, Kit, with Stafford advising her, lays the groundwork to make her fake suicide plausible and realizes that she will sever many important ties. Angela has a dinner party for Peter's birthday. Seeking help for her troubled marriage, Melissa looks in the wrong places. Maggie discovers that her baby may be born with problems and turns Chase away when he fails to understand her feelings. Meredith hires her former supervisor to rescue Erin Jones, while Angela offers Vicky a new job at the spa.

When Skyler's disappearance and apparent suicide casts a pall over the mansion, Peter blames himself for not recognizing her distress. Peter's guilt drives him away, but Skyler's tragedy makes Emma finally realize that Dwayne is gone forever, and Angela is at last able to comfort her daughter. Tony learns the truth about Skyler (Kit). When Richard's son is kidnapped, he feels lost. Chase faces the fact that, of the two people in the valley he most despises, Richard and Angela, one is taking flowers to his wife and the other is trying to get closer to his daughter. Lance calls for his father's help when Melissa has a nervous breakdown.

Due to Melissa's peculiar behavior, Lance loses his chance to join an exclusive club, which alienates him from Joseph. After Richard becomes the new distributor for Angela's wines, Angela hires a new lawyer. Vicky and Angela become concerned about Dan's preoccupation with Suzanne. Richard tries to recruit Peter in his vendetta against Angela. Lance enlists Chase and Maggie to help him with Joseph.

When Maggie prematurely gives birth to her baby at Falcon Crest, Angela conspires with rich newcomer Roland Saunders in her plans to destroy Richard. Angela finds a kindred spirit in Saunders, ""the rudest billionaire in the Fortune 500."" When Richard offers to sign the birth certificate of Maggie's baby, Chase surprises them by signing it himself. The idea of the new baby troubles Emma. Lance questions his father about Kolinski, while Tony has to lie to his son to protect Kit. During Angela's international wine show at the spa, the matron of Falcon Crest arrives with Saunders, and Peter disapproves.

When Maggie prematurely gives birth to her baby at Falcon Crest, Angela conspires with rich newcomer Roland Saunders in her plans to destroy Richard. Angela finds a kindred spirit in Saunders, ""the rudest billionaire in the Fortune 500."" When Richard offers to sign the birth certificate of Maggie's baby, Chase surprises them by signing it himself. The idea of the new baby troubles Emma. Lance questions his father about Kolinski, while Tony has to lie to his son to protect Kit. During Angela's international wine show at the spa, the matron of Falcon Crest arrives with Saunders, and Peter disapproves.

Peter threatens Angela and Roland Saunders as he tries to discover their connection to Kit Marlowe. Due to Angela's interest in Maggie's baby, Maggie concludes that she must give the baby up for adoption if the child is to lead a decent life. After Maggie refuses to allow Emma and Karlotti have her child, the two instead apply to adopt a child. While Angela plans Dan and Vickie's engagement party, she promises to give them a vineyard. Peter forces Tony to tell him about Kit. After Chase makes Gabrielle a proposition, he offers Lance a partnership with him and Tony. Angela plans to solve the mystery of Kit Marlowe.

District Attorney Wilkinson is highly pleased when Angela suggests he campaign for attorney general, with her help, if he agrees to convict her ex-son-in-law, Tony, of murder. Wilkinson digs until he makes sure that he can nail Tony. Angry at Peter for his involvement with Richard, Angela seeks a divorce. When Maggie and Chase are unable to find the adoptive parents of their child, Maggie pleads a mother's appeal in the media while Chase offers a reward. Gabrielle accepts Chase's offer to be in charge of his wine operations. Vicky has no one to turn to except Eric. Melissa continues her double life as a chanteuse.

Melissa's desperate attempts to keep the baby result in a car chase that ends when the car carrying her, Chase, Maggie, Richard and Dan plunges into San Francisco Bay. Angela discovers that her child, whom she previously believed to have died in childbirth, is alive and ready to return to haunt her. When Angela and Peter reconcile and she tries to buy Peter's freedom, Peter, facing murder charges, flees with Kit.

Angela learns the truth about her supposedly deceased child. The car chase has endangered Melissa, Chase, Richard, Dan and Maggie's lives. After taking a disastrous fall, Chao-Li lies at the foot of the stairs. Emma, frustrated with her mother's meddling, stands high above Falcon Crest and threatens to jump.

A French woman and a mercenary soldier from Chase's past intrude on the lives of Angela and Maggie and force them to face unpleasant consequences. Angela's wiles work on Chao-Li. Emma believes she is embarking on a new life as a businesswoman. After Lance moves in with Dina amid Melissa's accusations that he cares more for his car than he does for her, Melissa attempts to make peace with Lance.

Unsuccessful in luring Lance back to her side, Angela turns to Dan to manage her winery and find someone new to run the spa. However, when Dan assigns Melissa to manage the spa, Melissa, to Angela's consternation, creates a successful nightclub for the Del Oro. On the turn of a card, Richard wins Eric's Nevada land and plans to create a town called Channing. While Maggie agrees not to press charges against Melissa, Nicole continues to harass Maggie until Angela enters the fray.

When Richard Channing and John Remick offer to help Maggie pay off Angela, each plays dirty to make sure that he will be the one to whom she is indebted. When Angela sends Lance and Dan to investigate Emma's new job, she is too late. Vickie not only tells Maggie that she is pregnant, but also confesses Eric's gambling mania. Dina is seriously injured in a car accident with Lance. While Maggie and Richard visit his new Nevada property, they are unaware that they are under surveillance. Consequently, they return home to face Angela's demand for payment.

After Angela and Richard individually maneuver to meet the man behind the mysterious activity in the Tuscany Valley, they are both placed in precarious positions. Maggie can't understand Richard's reluctance to rely on the police. Angela forces Wilkinson to reveal Richard's ownership of lake property in Nevada. Emma, agreeing to write her autobiography, acquires a ghostwriter and personal manager, and heads for Hollywood. While Lance discovers that someone sabotaged his car, Vickie finds herself among the homeless. In conclusion, an explosion destroys the Gioberti home.

After Angela and Richard meet the mysterious Carlton Travis, Angela conspires with Carlton to destroy Richard. Richard realizes that although Carlton is a man who won't listen to reason, he will listen to Angela. With all the trimmings Hollywood offers, Emma works on her screenplay. Melissa takes Dan to Australia to visit Cole and her son. With Frank Starr's assistance, Dina's nurse works on her patient to discredit Lance. Angela and Travis discover that they have a history.

After Richard rejects Carlton Travis's offer of a truce, Travis kidnaps him and Angela. After Maggie hires an old friend to plan a birthday party for Richard's son, Angela brings a puppy as a gift to the party. Melissa spirits her son away for a picnic and becomes lost in the Australian bush. Dina's nurse gets her to sign Lance's half-million-dollar check over to her. Lance suspects that Frank Starr tampered with his car.