Following Sean's death, Alexis is comforted by Dex's solace and friendship, as the two renew their passionate love for each; Fallon slips out of Jeff's room after Sammy Jo shows up unexpectedly to accept his marriage offer; Blake is devastated by his fear that Krystle's disappearance may by a severe mental disorder.
Sammy Jo and Jeff are relieved when they discover the body found floating in the lake is not Krystle; Blake's fears increase when Krystle's car is found and the man arrested for stealing it is a convicted murderer; Alexis finds a run in with Sable Colby an unwelcome surprise.
Enjoying his time with Krystle in Dayton, Blake remains perplexed by the case of her memory lapses, fearing they may occur again; Adam puts his plan of taking control of Denver-Carrington into action by hiring Steven's personal assistant to work for him; Sable puts the moves on Dex; Finding out she is suspected in a murder, Krystle demands to see the body.
Blake gives Jeff one-third controlling interest in Denve-Carrington, postponing Adam's plans to gain sole control of the company; Blake and Krystle meet with Dr. Hampton to begin tests, while Blake tells her the true reason for her severe headaches.
Suspecting her accountant has worked with Sean to ruin Colbyco, Alexis faces the reality she may lose her empire. Sable uses Hamilton Stone to get back some of the Colbyco dynasty she feels rightfully belongs to her. After agreeing to give Jeff control in overseeing the pipeline for Denver-Carrington, Adam immediately schemes to double cross him.
Surrounded by those she loves, Krystle resolves to live. Fallon takes the picture of Blake and the dead man to the morgue, unaware she is being watched. Blake and Virginia, pulled together by Krystle's illness, form a close bond. Knowing about the picture, Sable promises Blake she will be an ally when the story breaks.
Interpreting Alexis' vendetta against Blake as a love/hate relationship, Dex tells Alexis he is through being taken for granted by her. Sammy Jo suspects Virginia may not be as naive as she wants people to think. Krystle is told her only chance to live is an operation with only a marginal chance of success.
Krystle agrees to have her operation, but only after Blake signs her divorce papers and living will, to be enacted if the surgery is not a success; Fallon is haunted by recurring dreams of Roger Grimes; Krystle welcomes Sable as a part of the family at a dinner in her honor; Virginia tells Krystle about her wayward youth.
Krystle's operation is unsuccessful as she slips into a coma. Told she will probably never recover, a grieving Blake returns to Denver; Sammy Jo is attacked by an unknown assailant; Dex discovers Joanna is a link to Alexis' controller, Heath; Fallon gives in to Zorelli's persistent charm, and ends up under his sheets.
Fearing that his darkest secret will be revealed because of the search for Roger Grimes murderer, Blake vows to take the rap to put an end to the investigation. Toying with Dex, Sable leads him on enough to arouse his desires, and then turns him off like a cold shower; Virginia is unable to hide her fiery dislike for Dex.
Sammy Jo recognizes Gibson as the man Krystle saw in her nightmares, and Blake vows to protect his family secret with his life; Adam discovers Virginia's secret past; Blake entrusts Dex with documents relating to their families secret; Zorelli accuses Blake of getting him taken off the Grimes case.
Adam and Jeff exchange blows after Jeff accuses Adam of being disloyal to Blake. Dex begins to doubt Alexis can ever offer him the kind of love he needs. Blake gets Gibson to tell him Sable is responsible for hiring him; concerned about Alexis' threat to prove he is responsible for Grimes murder, Blake searches for something to use against her.
Sable tries to convince Blake she is on his side. Dex is attracted by her loyalty; Sammy Jo's interest in Tanner McBride intensifies; Dex attacks Adam after learning he took advantage of Virginia; Joanna becomes jealous of Sable's interest in Dex; Virginia leaves Denver.
Upset by her close encounter with death, Sable goes to Dex for comfort; Alexis goes to Paris to keep an eye on Boyd's commando operation to retrieve her oil tankers. Seeing a little of Dex in Boyd, Alexis gives in to her lust for him; Blake learns how Adam manipulated Virginia and kicks him out of the house.
Blake resumes control of Denver-Carrington and fires Adam; Joanna accepts Adam's offer to work for him and Alexis; Zorelli confesses his love to Fallon, but she remains confused by her feelings toward him; Sable persuades her daugher, Monica, to come to Denver to help her destroy Alexis.
Alexis gets her revenge on Sable when she tells her her tankers have sunk; Alexis is devastated when she discovers Dex slept with Sable; as Sammy Jo becomes increasingly fond of Tanner McBride, she is unaware that he is married; Blake is crushed when he finds the picture Zorelli left for Fallon; a witness steps forward and tells Alexis he saw Blake kill Roger Grimes.
Alexis is emotionaly crushed by Dex's affair with Sable; Blake tells Dex and Sable beneath the lake is a Nazi treasure and his father killed Grimes to prevent him from exploiting it; Adam tries to win back Blake's trust so he can spy for Alexis; Sammy Jo learns McBride is a priest.
Sable unleashes her lawsuit against Alexis; Dex dives into the hidden vault beneath the lake and finds it empty; Zorelli tracks down the uncle of Dominique Devereaux, learning he knows something about Grimes' murder; Alexis leaves for Switzerland to protect her assets; after Adam sees Blake leaving Elsworth Chisolm's house, he finds Chisolm murdered.
Blake is a suspect in Elsworth Chisolm's apparent murder. Charles Matthews warns Blake that Zorelli has been asking him questions about Blake's father. After Fallon learns that Zorelli used her to find out information about Matthews, her love for Zorelli turns to contempt and distrust; Phoenix Chisolm tells Adam about secret tunnels beneath the Denver-Carrington mansion.
Jeff and Dex meet with Roger Grimes' wife and learn he has a son. Sable is pregnant and unable to tell Dex that he's the father. Adam has a picture of Jeff and Monica retouched to appear incestuous and then submits it to a sleazy tabloid. Blake pleads with Phoenix to help him solve the mystery that lay beneath his mansion, but is severely rebuked.
Charles Matthews tells Blake a grim secret; Zorelli finds a bug hidden in his apartment; Alexis tells Monica that Jason Colby isn't her father; Alexis learns she has a Fredrick Stahl original and realizes Blake's deep, dark secret; Sable tells Dex she is pregnant and that he is the father; Sable confides in Blake that Monica was born as a result of a rape.
Alexis threatens to sue Blake for half of the plundered Nazi treasure unless Sable withdraws her lawsuit against Colbyco. Sable agrees; Krystina leads Fallon to the treasure. They are followed by Dennis Grimes; Blake and Handler face each other in a shoot out; Dex and Adam square off on each other.