Alexis' life is spared as Krystle is able to restrain Blake's lethal temper; as La Mirage burns, Amanda is rescued by a mysterious stranger; Claudia is claimed victim by the ravaging flames; Alexis turns the La Mirage fire into a scheme to bring Blake to his knees.
An incensed Blake discovers the morning headlines accusing him of murder and arson; Adam offers his loyalties to Alexis and Colbyco; Alexis acquires enough stock to assume control of Denver-Carrington; A devastating car crash leaves Krystle bloodied and unconscious.
As Krystle recovers from the accident, Alexis persuades the D.A. to suspect Blake of arson; Dominique offers Blake a 50 million dollar loan; Phil Thorpe threatens to murder Krystle in retribution against Blake.
Blake fires the La Mirage manager for withholding crucial information regarding the fire; Alexis offers a reward for the arrest and conviction of the arsonist; Michael Culhane continues to romance Amanda; Ben bribes the La Mirage manager to testify against Blake, resulting in his arrest for arson and murder!
Krystle's dizzy spells force her to see a doctor; Jackie remembers seeing the La Mirage blaze start in Claudia's room, proving Blake's innocence; Blake receives a letter from Caress, pleading for his help; a raging storm that strands Alexis and Dex alone in his trailer leads to a night of passion.
Blake's trip to Caracas to free Caress proves unsuccessful; Dex's proposal of marriage to Alexis is rejected; Blake catches Michael Culhane and Amanda in a passionate embrace and immdediatly fires the promiscouse chauffeur; Dex agrees to help Blake free Caress from prison.
Blake and Dex's plan to free Caress from prison succeed, as she returns to Denver with a fever for revenge; Sammy Jo is pregnant with Clay's baby and warns Steven no court would deny her custody of Danny; Michael Culhane asks an old friend, Zach Powers, to return to Denver.
Caress vows retribution for her years of imprisonment; Michael Culhane uses Zach Powers to acquire thirty percent of "The Crater" project; Sammy Jo tells a distraught Clay of her pregnancy; Caress blackmails Emily Falimont; Amanda moves in with Michael, against Blake's wishes.
A dying Emily begs Blake to use the letter she wrote to bring an end to Alexis and Ben's treachery; Clay and Sammy Jo are married, Nick Kimball relentlessly persues Dominique's affections; Blake rejects Michael Culhane's efforts for a reconciliation.
Using Emily's letter, Blake devises a way to regain his empire; Sammy Jo learns she is not pregnant, but keeps it a secret from Clay; fearing Michael Culhane's deceitful intentions, Blake shuts down operation on the Crater; at Alexis' grand Ball, Blake presents her and Ben with Emily's letter and proof of their perjury against him.
Alexis relinquishes control of Denver-Carrington and the mansion back to Blake; Ben battles Alexis for equal control of Colbyco; Michael Culhane and Alexis form an alliance against Blake; Dominique and Alexis get tangled in a savage cat fight; Alexis sends Adam to Australia to discover information on Ben's sordid past.
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 give her father 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.