After the specter of Jeff Wainwright haunts Maggie, she overcomes her intrinisic fear of firearms and purchases a gun for protection. When Maggie's daughter Vickie returns home, she admits that not only has she has gone through two divorces, but that she lied about being a famous ballet dancer. Despite the ballistics test results, Maggie refuses to believe that a member could be responsible for shooting Chase. At Falcon Crest, Angela considers a foreclosure. In spite of a few close calls, Kit succeeds in hiding her past from Peter.

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.

As Chase hires a private detective to protect Maggie, he is unaware that his daughter also needs protection. Troubled by Kit's denunciation of Fixx, Lance fires Kit, while Angela plans to pit Lance against Fixx. Julia informs the family about an unexpected decision. Miss Jones falls for Richard's scheme and both fishermen think they have caught the big one. Richard also snares Angela to bail him out of their racetrack. Lance and Melissa return from their wedding and Fixx becomes suspicious of Kit's mysterious activities. Wainwright gets Vicky under his control.

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.

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.

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.

In addition to a huge ransom, the kidnappers demand that Meredith, the only one who can identify them, be handed over to them in exchange for Richard's son. Richard learns that Angela was responsible for putting Meredith in his household and vows that she will pay for what she has done to him. Concerned about Vicky's relationship with Dan Fixx, Chase travels to Oklahoma to determine for himself the type of man his daughter is involved with, and is then beaten up by the small town's corrupt chief of police and his henchmen. Lance refuses to declare Melissa mentally incompetent after her breakdown. After selling his winery to Lance, Eric talks Angela into letting him manage the spa. Emma discovers that she is not pregnant with Dwayne's child and now wants to have a baby with Karlotti.

Angela interferes in the lives of Chase, Richard, Maggie, Vickie and Dan. Vickie and Dan's romance is complicated by Angela's peculiar moral code. When Angela accuses Richard of fathering Maggie's expected child, her manipulations make Chase's altruistic defense of troubled vineyard owners seem like a play for personal gain, which puts a wedge in his relationship with Gabrielle. Melissa's troubled behavior brings a closer understanding between Lance and Tony. Peter plans to win Angela back and break Richard at the same time, while Richard thinks Kit Marlowe can be played to bring Peter to his side.

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.

At Angela's engagement party for them, Vicky and Dan set the tone of the party by trying to avoid it. After Kit demonstrates a need to tell Tony good-bye, both Richard and Peter confront Saunders. Maggie arrives looking for her baby, which she now knows is Chase's. After Emma confounds Angela by introducing her adopted son, one of the guests is found dead in the winery.

Tony and Lance assist each other as circumstantial evidence implicates them in murder, but it is to no avail when Angela goes back on her word. Angela breaks her promise to Lance when she realizes that it is more important to protect her grandson than his father. Vickie and Eric's actions at the party make Dan face a dilemma. Francine Hope is able to help Maggie and Chase, who are then able to contact the lawyer who arranged the adoption of their baby. Richard is finally able to realize his revenge on Angela. When Melissa entertains as ""Veronique, the Slumming Socialite"" on amateur night at a San Francisco nightclub, she becomes all the rage.

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.

When Kit comes to Tony's defense, the gesture proves worthless. Tony's trial proceeds as if D.A. Wilkinson had scripted it, until Kit arrives at the courtroom. After Chase uncovers evidence that Melissa had engineered the botched paternity test, he is too late to intercept her due to Angela's threats. Chao-Li loses face because Angela and Lance stay up all night to take care of him. After Chase and Maggie decide on a quick divorce, Richard sees his chance for happiness.