Sammy Jo fears she will lose Clay if he learns about her false pregnancy; Adam discovers the identity of the mysterious woman tormenting Ben; An explosion rips through an oil rig, trapping Blake amidst raging flames, as Ben leaves him to die.
Ben returns to Blake's aid and pulls him to safety, both narrowly escaping the devastation of the ensuing explosion; Blake suffers memory loss due to the explosion; Alexis leads Blake to believe they have been married for the past twenty-three years, as she attempts to have him sign over half the China Sea lease back to her.
Sammy Jo informs Clay of her desire for an annulment to their marriage; Dominique is roughed up by thugs threatening her to co-operate with their boss, as Gary Tilden coincidentally returns to Denver; Alexis confides in Blake about her charade, causing him to regain his memory and he reunited with Krystle.
Krystle suspects Blake's once passionate feelings for Alexis may still be lingering; Blake and Ben reach a mutual reconciliation; Amanda disappears to London; Leslie Carrington finds Ben, but their reunion brings out her bitterness; Steven and Sammy Jo strengthen their bond, as Clay vows to never let her go.
Clay reluctantly signs the annulment papers to end his and Sammy Jo's marriage; Blake persuades leslie Carrington to stay in Denver and Ben a second chance; Adam proposes to Dana, as Alexis makes plans to have the wedding in the Carrington mansion; Dex calls it quits with Alexis; Krystina suffers a serious loss of breath and is rushed to the hospital.
Krystina lapses into unconsciousness, as doctors fight against time to bring her back; Krystle rebuffs Alexis' sincere concern for Krystina's health; Steven and Sammy Jo assume the appearance of a normal marriage for Danny's sake; Krystle and Blake are horror stricken with the news that Krystina's life depends on a heart transplant.
Krystina is flown to California, awaiting a donor for her vital heart transplant; Leslie moves in to the Carrington mansion; Blake and Krystle mount a media blitz to plea for a heart donor, as a tragic accident claims the life of Dex's best friend's little girl; a Carrington nemesis returns to Denver, stalking Adam.
Krystina's only hope for life seems dashed, as the mother of the heart donor retracts her offer to allow the operation; Neil McVane carries out his promise of blackmail, sending Adam evidence that will prove him not to be a Carrington; Leslie and Clay reluctantly agree to work together, as a love-hate relationship is formed.
Krystina is welcomed home, following her so-far successful heart transplant; Alexis' affections are pursued by a wealthy real estate baron; convinced he is not a Carrington, Adam's life begins to crumble; Krystle saves Sarah Curtis from suicide, and despite Blake's uneasiness, asks her to move in to the Carrington mansion.
Adam continues to slip further away from Dana and his family, as doubts to his Carrington heritage have their effect; Alexis ends her relationship with Michael Culhane, causing him to seek revenge for her business dealings behind his back; Sarah Curtis continues to form an unnatural attachment for Krystina.
Sarah makes a dress for Krystina identical to one worn by her own little girl; concerned over his irrational behavior, Blake hires a private investigator to follow Adam, as his self-destructive quest leads towards disaster; Sammy Jo and Steven give in to their passionate desires for each other.
Steven struggles with his love for Sammy Jo and his homosexuality; despite being warned of Dirk Maurier's questionable business practices, Alexis agrees to a partnership; Leslie and Clay's romance leads to passion; aware of Sarah's dangerous attachment to Krystina, Krystle asks her to leave. Sarah takes Krystina with her, disappearing without a trace.
Krystle and Blake wait helplessly as the police search for Sarah and Krystina; Adam tips Neal McVane to a stock buyout by Alexis and Dirk Maurier; Nick Kimball celebrates his recent good fortune with a marriage proposal to Dominique; Krystle discovers an address which may lead her to Krystina.
Krystina and Krystle are reunited, as Sarah is placed under private psychiatric care; Adam confesses his true identity to Blake and Alexis; following a visit to his mother's grave, Adam returns to Dana and pleas for her forgiveness; Gavin Maurier, nephew of Dirk, arrives in Denver, searching for Alexis and her money.
Blake is stunned to learn that Clay may be Ben's son; Jackie's attempt to reunite Dominique and Garrett fail; Sarah accepts her baby's death after witnessing the gravesite; Clay tells Leslie of their possible blood ties, resulting in her rage towards Ben; Alexis is treated to a night on the town on the back of Gavin Maurier's motorcycle.
Krystle is followed by a mysterious stranger, Clay and Ben plan to leave Denver following the inconclusive blood test to determine Clay's real father; Blake and Alexis show their love for Adam by adopting him legally, hoping to quell any of his lingering doubts of their love.
Matthew Blaisdel has returned to get Krystle back and has taken over the Carrington home with help from some Peruvian mercenaries. Alexis is saved from drowning by a mysteriously handsome stranger. Jeff finds Fallon after she disappeared in the Mojave desert.
Steven wants to take over his father's football team and reign in hotheaded Johs Harris. Adam's wife Dana is unable to have a baby because of a secret from her past. Alexis offers Sean a job at ColbyCo.
Dana seeks a surrogate mother so she and Adam can raise a child. Sammy Jo rejects Josh Harris' advances. Leslie accepts a job offer from Alexis. Krystle suspects Alexis's newspaper is out to sabotage Blake's campaign.
Just as Blake is making up his mind about which one of his children could best take over his business if he gets elected, he finally learns about Fallon's 'delusion' from Jeff as well as Adam's surrogate baby. Leslie joins Jeff on a trip to New York.
Adam, Steven and Fallon each get a share in Denver-Carrington, but it is Steven who will sit in Blake's chair. Alexis and Sean dig up Dana's past. Jeff and Fallon separate, not in the least because of Leslie.
Eveyone who's anyone in Denver attends Alexis' Charity Fair in medieval costumes. Amongst them, Dana is being blackmailed by Sean, Josh Harris gatecrashes to see Sammy Jo and Alexis has a special surprise for Blake...
Josh Harris' o.d. threatens to harm Blake's campaign. But Steven refuses to force his football team to take mandatory drug tests. Steven has moved out of Delta Rho and Fallon wants a divorce, so a glum Jeff and Sammy Jo take their sons on a skiing trip.