J.R. Ewing (Larry Hagman) is in town planning an offshore drilling project on the beach, which everyone is opposed to, except for Richard who asks Laura to get together with Chip Todson, J.R.'s PR man. He asks her to do this so he can get the account. Karen has an afternoon rendezvous with J.R. so Gary can go to his office to steal an important file he can use against his brother. Along with the rest of the community, Gary protests by picketing on the beach.

Lilimae Clements, Val's mother, turns up in Knots Landing where they put their troubled past to rest.

After Gary becomes violent during his drunken state, Val admits him into a detox ward.

Sid is accused of rape by a hitchhiker and Sid's sister Abby Cunningham arrives in Knots Landing.

Sid has a blood clot which will permanently paralyze him unless he is operated on. However, there is a 40% chance the operation could kill him. Karen does not want him to get the operation, but Sid insists and makes Karen sign his consent form. Sid tells his family how much he loves them and later dies on the operating table.

Abby tries to find her children and Lilimae returns to Knots Landing.

Diana misinterprets Karen's friendship with Bill and out of spite she goes to a party with a biker friend whom Karen hates. Kenny and Ginger deal with some of the challenges of being new parents.

Abby and Gary continue their affair until his own guilt forces him to end it. However, Val is already suspicious and confronts Abby.

Karen meets Mack MacKenzie after barging into the Federal Prosecutor's office, where he is handling Sid's case. Gary tries to talk to Val following their split and Abby sends J.R. chapters from Val's book "Capricorn Crude".

Mack learns that Karen is using court transcripts to go after Sid's killers herself. Laura gives birth to a boy and calls him Daniel. J.R. buys the publishing company behind Val's book and he is also questioned by Abby about Gary's future inheritance from Jock.

Gary wants to get back with Val and even Lilimae tries to help. He also becomes entranced by a beautiful singer called Ciji. Mack cautions Karen about her pursuit of Sid's killers. Kenny takes a professional interest in Ciji. Richard makes a big decision without involving Laura.

Karen looks through KLMotors books to find checks from West Century Auto - Frank and Roy's company, whom she believes are Sid's killers. Karen also invests in Richard's restaurant after hearing about money worries from Laura. Val meets her new publicist, Chip Roberts.

Gary goes to Dallas for the reading of Jock's will and Abby turns up to surprise him. Gary inherits millions from Jock, but is disgruntled by the terms of the will thinking his father never had any faith in him. Val is also in Dallas on a book signing tour and J.R. informs her about owning the publishing company behind her book.

Kenny and Gary almost have a fight over Abby's deals. Mack proposes to Karen and she accepts.

Richard physically attacks Ciji and Laura orders him to move out. Diana tells Karen she is moving to New York with Chip. Ciji blames Val for Gary's drinking. After Ciji does not show up to perform at the restaurant, her dead body washes ashore.

Val is booked by the police after her confession and Abby makes Gary sign over power of attorney to her. Lilimae tells Chip he started the mess between Gary and Val because he leaked the transcript to the tabloids. Val is released and Richard secretly leaves Laura and Knots Landing.

Laura calls the police to find Richard, believing he is Ciji's killer. Chip and Diana decide to leave for New York. A private investigator tells Lilimae he is looking for a dangerous man called Tony Fenice and he shows her a picture of Chip. By the time Karen finds out, she discovers Diana has already left with Chip and becomes frantic. Gary's hearing approaches but he does not co-operate and appears resigned to spending the rest of his life in jail for murder.

Mack believes Chip killed Ciji and a search begins for him. Karen is upset that Diana has gone with Chip. A mystery man helps Val when she is bombarded by reporters. The murder charge against Gary is dropped due to lack of evidence.

Diana tells Karen that Chip killed Ciji for her, then turns to Abby as she feels that Karen betrays her confidence. Abby's attempt to buy her way into the US Senate campaign of Greg Sumner is rebuffed. Abby has five days to marry Gary as he will then inherit 10% of Ewing Oil and she wants it to become community property. She and Westmont secretly start a subsidiary of Gary's company called "Apolune".

Eric persuades Diana to testify. Val is torn up over Lilimae's legal problems. Laura advises Gary to leave Val alone. Gary and Abby marry, but while at a hotel on their honeymoon he meets a woman who looks exactly like Ciji.

Abby finds out she will need a coastal variance to develop Lotus Point and asks Greg for help and they end up in bed together. Gary continues to pursue Cathy. Laura is surprised at the sight of Cathy. Abby continues to provide a home for Diana. Val and Ben sleep together.

Mack realizes Wolfbridge is bigger than he first thought. Abby warns Laura to not play her game. Val tells Mack she is worried about Karen's dependency on pills but Karen disagrees with her.

Karen is admitted into a rehab program. Abby gets angry at Greg for getting her involved with Wolfbridge. Greg also has his own problems with them during the election.

Abby orders Cathy to leave the ranch until Gary tells her to stay. Gary and Cathy sleep together. Gary wants to divorce Abby but she does not want to divorce him.

The police lose Abby, who was kidnapped by Mark St. Claire. Abby is held on a yacht. Karen is told she will need surgery to remove the bullet.

Karen is told that a piece of the shattered bullet is lodged in her spine and must have risky surgery to remove it but she refuses because of what happened to Sid. Lilimae's nephew arrives to stay with her and wishes to know about his mother. Greg finds Abby and shoots St. Claire.

Abby asks Dr. Ackerman where the babies are but he tells her she is sick. Karen's hands continue to cause her problems. Scott Easton turns up dead and Ben is concerned with Val. Gary meets Paul Galveston, who gives Gary an expensive gift.

Val finally regains some memories and agrees to return home with Gary. Mack believes that Empire Valley is a cover for something bigger. Galeveston tells Abby he will tell Gary about being the twins' father but he suffers a stroke as Abby watches helplessly.

Karen starts to question people about the day Val gave birth. Galveston dies and his wife Ruth arrives, telling her son, Greg, that she wants him to take over Galveston Industries. Greg learns that Empire Valley is a communications center, which will be used to interfere with the governments own communications.

Ben proposes to Val but she declines and he believes she can hear her babies cry. Karen tells Ben of her and Mack's investigation. Greg asks Abby to get Gary out of Empire Valley and suggests that if Gary knows he is the father of Val's twins his interest in Empire Valley will disappear. Mack is offered the chance to become a senator.

Val's nurse reveals Ackerman stole the babies and when Karen and Mack confront him, Ackerman shoots himself in the head.

Greg asks Laura to marry him. Mack tracks the babies down to Harry and Sheila Fisher. Abby tells Val that the babies are alive and she takes her to the Fisher's home, where Harry drives away with one of the twins.

Mack talks to the press about the need for an adoption agency watchdog. Gary breaks in a new horse with Olivia and gives it to her. Ben buys a piano for the babies. Greg informs his colleagues that he can get round Gary using Abby and that they have nothing to worry about. Jill tries to move her stuff into Mack's office, he throws her out. Gary tells Karen that if he needs her he will let her know. Ben tells Joshua that his ratings are slipping and he had better come up with something to turn things around. Mack tells Karen that Jill is like Dracula's sister. Joshua takes Ben's pressure out on Cathy. Next morning Cathy has a black eye. Peter Hollister appoints himself Greg's new secretary by sending away the other applicants and announcing himself. Greg finally gives him the job. Karen finally meets Jill. Gary decides he is going back to work.

Greg gets angry with Coblentz over Frank Elliot's death. Joshua envisages his and Cathy's demise. Joshua takes up street preaching. Val dismisses him and drags Lilimae away. Mack tells Gary that no-one must know about his investigating Elliot's death, including Abby or Karen. Lilimae goes street searching for Joshua and begs him to come home. Greg tells Abby how dangerous Coblentz is. Mack, Karen, Val and Lilimae talk about getting Joshua committed, Lilimae refuses. Lilimae goes off to find Joshua. Joshua is hiding in Cathy's car when she leaves the TV station. Lilimae finds Joshua holding Cathy off the edge of a building. Joshua falls, on his own.

The police decide the Joshua Rush case is closed. A newspaper runs a story on Cathy and Lilimae's involvement in Joshua's death. The governor makes Jill Mack's administrative assistant. Olivia hears the truth about her mother's secrets on the phone. Jill gives Mack the key to her hotel room. Olivia leaves a message saying she is not coming home. She asks Karen if she can move into her house. Olivia threatens Abby that she will tell Gary about the babies if she does not let her stay with Karen and Mack.

Peter says he does not want to be Senator. Gary returns from Dallas with news that his family will not fund the cleanup at Empire Valley. Karen tells Abby that she will never sell to Greg. Gary tells Val he wants to take back Empire Valley from the twins. Ben decides to become Cathy's tour manager. Abby tells Peter he will accept Greg's offer to become Senator. Peter signs a deal with Greg. Ben tells Val he is going on tour with Cathy for six weeks. Lilimae is angry with Cathy and slaps her. Gary gives Empire Valley to Greg. Abby and Peter sleep together. Ben tells Val he has to get away and leaves. Paige Matheson shows up and tells Mack she is his daughter.

Paige tells Mack her mother died a year ago. Karen has gone missing. Eric sees his mother's car parked at Lotus Point. Abby and Peter sleep together. Paige tells her story to Michael. Gary finds Peter's car at Abby's and takes Olivia off to stay in a hotel. Mack reports Karen missing to the police. Gary and Olivia find Jill waiting for him at the hotel. Cathy tells Ben she never wanted to hurt Val. Val goes to the beach house and finds evidence of Ben and Cathy's affair. She smashes the place up. Karen wakes up in a cellar having been kidnapped. Eric accuses Greg of having something to do with Karen's disappearance. Gary goes to find Val on the beach. Karen comes face to face with her kidnapper.

Phil asks Greg if he sees much of Mack. Mack tells the police to say publicly that they have got the kidnapper's fingerprints from Karen's car and an arrest is imminent. They do and word gets back to Phil. A flashback shows how Mack and Phil fell out. Phil lets slip Karen's name to Greg who figures out what is going on and tells him he better undo it before tomorrow. Lilimae tells Mack to call his daughter cause it will mean something to her. On the campaign trail, Gary reveals his shortcomings so that there are no surprises. He also challenges Peter to uncover what Greg has been up to. Phil tells Karen that if there is no evidence they cannot convict him of anything. Karen tries to find hidden exits from the room. Phil sets fire to the house.

Abby sleeps in Olivia's room to stop her using drugs. She then smashes the bathroom door in when Olivia locks it. Finding Olivia has hidden drugs in the bathroom, she removes the bathroom door and tells Olivia she will no longer have any privacy at all. Olivia gets Brian to pick up some schoolwork books from her friends, but they contain drugs. Olivia takes Abby's keys but she finds out and they fight. Abby gets Olivia's room wired up by a security firm so she cannot go out. When Abby finds out how Olivia is using Brian to bring her drugs, Olivia tells Abby that the dealers are expecting their money or they will take it out on Brian. Brian returns home with bruises which horrifies Olivia so much that she finally gives up all of her hidden drugs to Abby and agrees to get clean. Meanwhile, Mack goes East to see Anne.

Jean's superior tells her she needs to kill Greg. Greg tells Mack that he will handle Jean and that they should handle her buddy. Greg tells Peter that he does not like him trying to take his empire every time his back is turned. Greg buys Jean a drink. Val goes looking for a gun. Mack punches Jean's superior and the bodyguards drive off with him. Jean tells Greg she is sentimental about resurrections. Val finds and takes Gary's gun. Lilimae tells Gary and Karen about Jean and her clothing store. Mack tells Karen everything about what has been going on with Greg and Ben. Greg tells Jean all her friends have been neutralised when she pulls a knife on him. He pulls a gun on her. Mack and a cop bust in and arrest Jean. Val breaks into Jean's store and almost shoots a cleaning woman by accident. Val gets home to find Ben waiting. Ben has a nightmare about Jean shooting Val.

Laura and Greg name their baby Margaret Katherine and call them Meg. Greg tells Paige that he is not her father. Abby fires Paige but Karen rehires her. Ben phones Val and tells her that he'll keep in touch with her as he is on the move. Greg tells Peter to settle down with someone. Peter thanks Jill for burning Sylvia's letter but she throws him out. Val phones Ben's news service who have no listing of him. Olivia confronts Paige about Peter, but Paige tells her about Peter and Abby. Olivia shouts at Abby about her involvement with Peter. Now enemies, Paige and Abby have a confrontation. Paige and Peter argue at Lotus Point and she throws plates at him. After vigorously washing her hands, Abby comes out of the bathroom at Lotus Point to find Olivia leaning over Peter's dead body. They look at each other questioningly.

Peter's absence is noticeable. Val is distraught when she does not hear from Ben but she makes amends with Laura. Greg kisses Paige to prove he is not her father. Experts say the crack at the Lotus Point playground is a structural problem and they will have to replace the concrete. Abby objects but is overruled by Karen and Gary. Al, a delivery man, begins to hang around Mack's office, much to his secretary Peggy's disliking. Val tells Lilimae she is not sure Ben will be coming back. Mack and Paige discover that they are both allergic to cantaloupe so he must be her father. The cement is dug up and Peter's body is discovered.

Paige is revealed as Peter's killer. She tells Mack that his death was an accident. Abby retracts her confession. Jill tells Gary she cannot handle his relationships with his ex-wives any more. Val buys a sports car. Al gets under Lilimae's skin. The police decide not to prosecute Paige. Val argues with Gary about the twins. Abby tells Greg that he'll need to pay her what Peter owed her. Mack wants Paige to apologise to everyone for what she put them through over Peter's death. Greg tells Paige she is lucky Mack is her father and not him. Laura tells Karen she is resigning from Lotus Point. Paige tells Abby she is sorry that Abby ever got off the murder charge and that none of it would have happened if Abby had not made Peter break up with her. Abby tells Paige that she put her and Olivia through a lot of trouble over it and sooner or later she will make her pay for it. Laura suggests to Greg that she may not have much time left to worry about things.

Laura tells Greg she has an inoperable brain tumour. He takes her from doctor to doctor looking for a different diagnosis. Laura tells him she is not seeing any more specialists. Greg says he is not going to Meg's christening because he is seen his last church. People hold a farewell party for Laura at Lotus Point. Greg visits a doctor Laura refused to see. His car gets towed away and he wanders the streets. Meg gets christened while Greg sits in his car. He eventually goes into the church. Laura decides to go to a clinic alone, Greg says she is going there to die without him and it is not being fair to him. She says she does not want him to see her die. She phones Karen to say goodbye and gives Meg to Greg and leaves for the clinic alone.

Abby's first love Charles Scott shows up to book a convention at Lotus Point. Karen and Abby have recollections of Charles. Michael takes Jody (who he saved at the beach) home to meet Karen and Mack. Eric returns with his new wife, Linda. Karen is not thrilled with either Jody or Linda. Val lets Gary see the kids. They kiss afterwards. Abby has dinner with Charles. They tell each other what they have been up to since they were together.

Al asks Lilimae to marry him. Val and Gary spend a day with the kids. Lilimae says they should live together, not get married. Abby gets stood up by Charles which brings back the anger and hurt she felt years ago when she learned he was getting married. Karen throws a reception at Lotus Point for Eric and Linda. Gary explains to a curious Abby that he and Val are only there together because of the children. Abby takes great pleasure in creating doubt in Jill's mind about Gary's relationship with Val. Linda works at endearing herself to Karen. Lilimae and Al drive off together. Greg receives word that Laura has died.

Everyone gathers at Greg's after Laura's death including Richard Avery. When Richard discovers that nobody went to the clinic with Laura when she was dying, he takes his anger out on the others. Gary tells Val that he respected how Laura turned her life around. Val argues with Karen about how Karen did not tell her Laura was dying. Richard wants to know why Greg keeps Peter's ashes on the coffee table. Greg says he always wanted to be the centre of attention. Laura's remains are sent to the wrong mortuary. Mack says Laura is determined not to come back. Everybody laughs. Mack helps Greg pick out a casket for Laura.

Everyone is gathered at Greg's after Laura's funeral. Jill finds out from Richard that Peter's ashes are on Greg's coffee table and she steals them. Jody makes too many assumptions of her place with Michael. Jill asks Paige how she can sleep at night after Peter's death and then whacks her in the back with her bag which contains the urn of Peter's ashes. Mack takes his frustrations out on Karen, Michael and Paige. Jill scatters Peter's ashes off a mountainside. Laura's close friends watch video messages she left and Val and Karen cry watching them. Greg watches the rest of the tape by himself and cries.

Greg phones Mack from home whilst pretending to be in New York. Mack and Karen suffer sleepless nights with Meg crying. A devious Irishman named Johnny Rourke heads to Knots Landing to see his former girlfriend Paige. He steals a credit card from the purse of the passenger sitting next to him on the airplane. Paige delivers Greg's painting and questions why he is not in New York like he told Mack and Karen. He replies "I am in New York." Val tells Gary they should just be ex-husband and wife. Jill tells Gary that she told Val that he is a free man and that Val must not want him any more if she does not want to see him. Charles' wife phones and he decides he has to go back home and leave Abby. A woman named Patricia Williams and her 12-year-old daughter Julie move into Laura's old house. Greg phones Karen to say he has been held up in New York. Johnny buys a gun in a bar. Charles returns to Abby and tells her he loves her.

Karen invites the Williamses (now including Pat's husband Frank) to dinner. Judith suggests Charles postpone their divorce until after their joint business successfully concludes. Abby conspires with Greg to disrupt their venture. Val refuses Gary's request to legally acknowledge him as the twins' father. Frank is alarmed to learn Mack is an investigator, and Mack assumes Frank is a cop. Judith secretly records Abby and Greg discussing their scheme and threatens to report them to FCC for insider trading, but Charles ends up giving the tape to Abby. A paranoid Frank destroys his couch when it is delivered a day late. Michael tells Jody he does not love her.

Karen becomes suspicious of the Williamses when Pat is at first reluctant to be interviewed by the local newspaper and then later learns that although Pat and Frank consented to the interview, they refused to have their picture taken. Val stubbornly refuses to recant her deposition testimony and acknowledge Gary is the twins' father. She later changes her mind. Charles suggests to Abby that Lotus Point expand the marina and even offers to provide the investment capital for the project. Abby is shocked to learn later that Charles drafted plans for the marina expansion five months earlier. A man named Manny Vasquez and his nephew Harold are both pleased that Charles is making progress on their "plan" for Lotus Point. Charles convinces Olivia that Abby did not break up his marriage. Abby hires a PI to investigate Charles' business dealings and finances. Mack and Karen observe Pat leaving late at night with a woman.

Mack goes to Mexico to search for Michael and Paige. Frank finds an unconscious Val on her bedroom floor. Gary rushes to the hospital and pays for Val's medical care. He calls Jill and notifies her of Val's suicide attempt. When Jill arrives and learns that Val will live, she excuses herself to vomit. Jill later muses to herself that Val is in a psych ward and no one will believe her when she regains consciousness. Fearing Manny may hurt her or Mack, Karen leaves Meg with an unhappy Greg. Harold, Manny, and his goon imprison Mack. They call Karen and force Mack to tell her to allow Manny's shipment to be unloaded. Mack plays on Harold's guilt about Olivia to shake his faith in Manny's promise to release Mack, Michael, and Paige. Later, Mack and Chava attempt to overtake Manny and his goon. Chava and the goon are killed. Harold is forced to kill Manny to save Mack. He tells Mack he does not know where Paige and Michael are.

Johnny engineers Paige and Michael's escape. Mack and Harold team up to find them, too. Val regains consciousness and screams that Jill tried to kill her. Karen refuses to call the police until she has heard news about her family. Mack later calls and tells her Manny is dead. Gary thinks Val's story is a hallucination. Pat does not think the pills Val took would make her hallucinate. Frank calls the police. Val tells her story to a police officer, who then goes to Jill and tells her off the record that she believes Val is disturbed. Greg hires Ted Melcher to work on improving his image with the public. Johnny, Paige, and Michael realize they must exit Mexico under cover, as Manny's people are in cahoots with the government. They link up with a small group of Mexican nationals attempting to cross into the USA. Val sends the twins to stay with Lilimae and Al. Thieves leave Paige, Johnny, Michael and the other nationals locked in an unventilated truck.

Greg avoids Paige. Ted helps Abby and Greg plan their wedding. Greg is uncomfortable when Meg is mentioned as a possible wedding guest. Paige sees the engagement ring and tries it on. Michael indicates he will major in business in college. Mack meets park ranger Paula Vertosick on his camping vacation and contemplates having an affair with her. Karen is amused at Abby's wedding announcement. Karen breaks the news to Paige, unaware that Paige thinks Greg wants to marry her. Olivia is disgusted to hear Abby is marrying Greg. Greg tells Paige he should never have gotten involved with her. Paige returns to work the next morning, insistent on keeping her job. Jill leaves Gary's ranch, but is giving her new landlord the run around about moving in. She lies that her apartment is not ready to get back onto the ranch. Greg announces both his candidacy for mayor and his engagement to Abby.

Abby and Greg make love. Mack quits his job and begins looking for office space to go into private practice. He successfully negotiates a settlement for the homeless. His secretary Peggy later joins him in his private practice. David, the man Jill claims she slept with in San Francisco, tells her she gave him VD. Gary is amused when Jill tells him the news. He later finds out he does not have VD. A delusional Jill tells the doctor she and Gary are getting married, argues with a print shop about wedding invitations, and inquires about enrolling "her" twins in kindergarten. Gary learns Jill had a prescription for sleeping pills. Later, Mack informs him that Jill negotiated a plea for an elderly lady who was facing prison time for forgery. Johnny tells Paige he knows how it feels to be dumped by someone you love. Val's Aunt Virginia brings the twins home with plans to stay to look after Val. Jill learns Gary knows she had a prescription for sleeping pills.

The court finds probable cause that Gary killed Jill and denies him bail. Jill's landlord finds Gary's car key near the building. Frank and Mack determine Jill plans to marry Gary. Frank lashes out at Pat for not believing in him. Geologist and co-conspirator Rick Hawkins tells Abby she will need an environmental impact report before she can drill for oil at Lotus Point. Karen sees the twins perform a magic trick with rope and theorizes that Jill killed herself. Once Jill's print is found inside a hole in Gary's trunk, Mack recounts for the DA Jill's diabolical plan to frame Gary for her "murder." Without disclosing her connection to Murakame, Abby convinces Ted to handle the company's PR. Paige tells Greg he married Abby because he is afraid of Paige herself -- and he should be. The DA drops all charges against Gary.

Abby shreds the contents of Paula's Lotus Point file. Ted accuses Abby of directing "Nagata" to give Paige his name. She then uses sex (in an elevator) to show him that she is still loyal to him. Greg is not interested when Paige tells him that "Nagata" is an actor. Ginny buys Val a computer to help her with her writing, and says a computer tech named Danny comes along with the purchase should any issues arise. Paige can no longer locate "Nagata" because Abby has paid him to leave the country. However, he shows up later and extorts Abby for even more money. Michael and Ellen are accused of plagiarism and placed on academic probation once Sumner Group's computer security program is revealed. Sumner tells them Johnny sold him the program. He tells Michael and Ellen to prove he stole it. Abby tries to get Paige to go work for Sumner Group in New York, but she declines the opportunity. Karen asks Abby for Murakame's number so she can contact the company directly. Mack accuses Paula of coming after him. Paula recommends Michael sue Sumner. Val enjoys meeting Danny. Abby asks Ted to deliver money to "Nagata." Ted learns Abby would be guilty of fraud and embezzlement if her former partners learned she is Murakame. Paige sees Ted and "Nagata" driving away together. Later, she learns that "Nagata" was killed in a car accident.

Ted assures Abby that "Nagata's" death was accidental. Mack dreams and daydreams of kissing Paula. Paige threatens to tell the police she saw him with "Nagata" before his death, and he tells her she is in way over her head. Val and Danny go on a lunch date. Through an interpreter, Karen learns that Murakame is not a Japanese company. News reports indicate "Nagata's" death may not be accidental. Michael threatens to sue Sumner. He later tells Johnny he will only end up with about 2 percent of what the computer program is worth. Frank joins Mack's office as an investigator. Karen invites Paula to stay with the MacKenzies while her water heater is being repaired in her apartment. Paige accesses Ted's computer files and learns Ted works for Murakame. Abby doctors Paige's Sumner Group expense reports so that it looks like Paige is misappropriating funds. When the discrepancies are noticed, Abby is surprised to additionally learn that Paige is living in a Sumner Group property rent-free. Greg tells Abby to handle it, so she fires Paige.

Karen accuses Abby and of being involved in Murakame and using Ted as a front. Paige threatens Ted that she will tell Greg about him and Abby. Greg asks Abby to fire Ted once he learns of his "duplicity" in owning Murakame. Ted and Abby agree that he will resign instead. Abby tips off that Greg has been imprudent about Ted's involvement in Murakame. Mort, a Sumner Group employee, picks Rick Hawkins' letter out of the trash and plans to use it to get closer to her. Paige suspects something has happened to Rick and shares her concern with Mack. Ted tells Abby he is not worried about Rick. Abby suspects he is killed Rick. Abby pulls away from Ted. Abby tries to set Olivia up with a young, attractive Sumner Group employee, but she announces at her 18th birthday party that she and Harold were married that morning. Ted tells Mack that Paige was fired because Greg set up his mistress in a Sumner Group apartment. Ted learns that the drilling permits were denied a week ago. Ted realizes Abby set him up. Mort delivers to Paige the letter, which contains a key and a note that she was right about Ted. Mack tells Paige he is ashamed of her. At Olivia's party, he punches Greg in the eye. The police discover Rick's body. A reporter contacts Karen with the allegation that Abby owns Murakame. Karen tells Abby she will go to jail for fraud.

Greg tells Abby their "business arrangement" (marriage) is over. Karen and Gary try to find evidence against Abby. The reporter tells Ted that she will need proof that Abby defrauded her partners before she can print the story. Greg allows Paige to keep her Sumner Group apartment but does not want Paige to know he is behind her staying. Rick's death is reported in the newspaper. Paige goes to the police with her suspicions that Ted is involved in Rick's death, but they find her story incredible. Harold and Olivia honeymoon in their apartment. Harold tells Paige she has a post office box key. Abby tells Paige she is a "6" on the Abby scale. When Abby suggests an annulment, Olivia tells her she wants to live on her own. Abby takes Olivia's credit cards and car. At her press conference, Abby claims she bought Murakame only recently to save it from oil drilling. She donates the Lotus Point land to the state as wildlife preserve. Abby is chosen as U.S. trade representative to Japan. While she is in Japan, Abby asks Karen to look after Olivia. Mack and Karen make plans to vacation in the mountains. Paige tries, unsuccessfully, to locate the post office box. Abby shows Ted photos of him tinkering under the hood of "Nagata's" car. She says Rick sent them to her, and as long as nothing happens to her, the police will never see them. She also notifies him that Rick sent Paige a note incriminating him. Karen volunteers Mack to drop Paula off on their way to their mountain vacation. Greg reveals that he stopped the drilling permits on Lotus Point. Abby and Brian leave Knots Landing. Ted claims Abby and Greg set him up and are trying to kill him. Ted stalks Paige incessantly, trying to convince her that she cannot trust Greg and should tell him what was in the letter Rick sent her. Both Paige and Ted try to get Mort to give them access to Rick Hawkins' files. Paige succeeds, but finds nothing in the files. Her apartment is ransacked when she returns home and the key is missing. Paige seeks refuge at Greg's ranch. Ted calls, claiming Greg was not out of town the night Rick died. Carlos confirms he was in California at the time. Greg says he was overseeing a takeover. Paige and Greg make love. Afterward, Paige finds a post office box key in Greg's personal effects. While getting gas on the road trip, Karen breaks her ankle, requiring her to spend a night in a hospital. Mack takes Paula to a motel some miles away but rain, a flat tire, and a skunk force him to spend the night in Paula's room. Paige runs away from Greg, saying she cannot trust him. Ted arrives. Paige is left standing in the rain, unsure whether to trust Greg or Ted.

Paige decides to leave the ranch with Ted, who insists that she tell him where Greg is storing the key at the ranch. When Greg calls and leaves a message proving that Paige took the key, Ted demands she give it to him. She throws him a key. Paige learns Rick Hawkins has a second home in Spring Lake and goes there, followed by both Greg and Ted. Greg hires muscle to get from Ted the key. Mack and Paula act awkwardly around Karen, who is discharged from the hospital. Karen notices Paula's odd behavior, but Mack pretends he does not notice. Val visits Danny at his place and they share a kiss, but Val leaves before things escalate. Gary is teased by Val and Pat about his mystery woman, but he admits to Pat that he is never met her. He later tells "Sally's friend" that he no longer wants to talk to her unless she gives him her number. When she does not, he hangs up. She receives a phone call from someone she insists not call her again. Later, she calls Gary back and agrees to meet him. She calls again just before they are set to meet and expresses some trepidation. She puts Gary on hold to answer her door. Gary listens as the man at her door argues with her and then attacks her. The phone line then goes dead.

Val tells Danny "no", but she cannot deny to Karen later that she is considering his offer. Paige pays to get the film negatives developed. Greg offers to re-hire her, but she rebuffs his offer and his attempt to romance her. Karen is surprised to learn that Mack and Paula shared a hotel room. She later invites Paula to a barbecue for Eric and Linda. Ted has a proposition for Greg: he will not release the Murakame papers, proving Abby defrauded her Lotus Point partners (and possibly incriminate Greg in her dealings) if Greg will get him the negatives Rick Hawkins had in his box. Eric and Linda return. Olivia and Harold haggle over their budget. Paige sees the photos of Ted engineering Nagata's car crash, and later apologizes to Greg, telling him she took the evidence to the police. Danny is surprised to learn the twins' teacher is named Amanda, and he avoids meeting her. The twins do not want to attend the barbecue with Danny. Gary places a large ad in the newspaper looking for "Sally's friend." Paige attends the barbecue and fights with Mack again once he learns she has agreed to return to Sumner Group. Karen is surprised when Michael tells her that Paula is in love with a married man. Karen agrees to let Linda stay with the Mackenzies for about two months while Eric is in Saudi Arabia for a job. Karen asks Mack what happened in the hotel room. He admits that nothing happened but that he was attracted to Paula. Paige is shocked when she learns Greg stole the pictures and traded them to Ted for the Murakame papers. Ted leaves for Japan. Danny shows up to Amanda's and kisses her.

Amanda rebuffs Danny after their one-night stand. Both Gary and Danny are annoyed at each other's presences in their exes lives. Gary invites Amanda for a weekend getaway to free themselves of Danny's presence. Paula rebuffs Greg's attempts to use her to make Paige jealous. Greg puts Paige in charge of a prestigious Sumner Group account. Paige rebuffs Tom Ryan initially, but after he shows up at the Sumner office party, she takes him home and has sex with him. Mack accuses Mark Baylor of killing Jeri Maddux, yet agrees to defend him later. Michael has no date for the Sumner office party until Linda agrees to go with him, pretending to be "Theresa." Ginny finds money hidden in Jeri's jewelry box.

Greg's daughter Mary Frances returns from a volunteer assignment abroad. She calls her father to meet up but asks to stay with Karen and Mack. Karen tells Mary what Greg was up to while Mary was gone, married to Laura, Laura's death, and so on. Mary realizes that Meg is her sister. Mary tells them to never tell Meg who her real father is so she will never have to feel ashamed. Mack starts talking to the DA about the illegal Okmin pension loans. Greg gets a lowdown on the sad state of the Okmin pension fund from Bob. Greg fires the head of Okmin. Harold borrows more money from Michael and loses it in a card game. Olivia gets cold feet and wants to cash out of the Tramco stock investment. Greg confessions his past to Paula. Greg is nervous about seeing his daughter again. Mack explains to Paige that Tom was with him and not with another woman. Mack tells Paige that family is family and that she is stuck with him. Somehow Paige did not know that Greg had another daughter, but Paula knew about Mary. Mary shows up at the ranch and Carlos encourages her to let him announce her arrival. Snooping around Greg's house Mary finds old family photos and remembers the way Greg treated her as a child. Mack realizes that the Sumner Group owns Okmin Industries. He goes to confront Greg blaming him for the issues with the pension. Their meeting is interrupted by Mary arrival at Greg's office. Later Paula tells Mary to give her dad a break that he is not such a bad guy. She also points out that although he abandoned Mary for 5 years she could have called him at any point. Mary goes to see Greg and reconciles. While waiting in Greg's office she is shot and killed by a sniper. Greg rushes in to find her slumped at his desk dead.

Both Michael and a bookie pressure Harold for money. Harold asks Mack to loan him $13,000, but when Mack hears how much money Gary has already given him, he says no. Harold calls Tom and says he knows who he works for, but will keep it a secret if he helps him out financially. Greg gets drunk, and the ghosts of Mary Frances and Paul Galveston follow him around. Worried, Carlos calls Paige, but then Paula shows up. Jealous, Tom follows Paige to Greg's. Paige is angry, but Tom says he is never been in love before, and they make up. Carlos gives Greg floppy discs that Mary Frances had in Greg's computer. Police discover where the sniper shot from and due to garbage on the site, think he was there a long time, so Greg was not his target, Mary Frances was.

Eric threatens Linda to stay away from Michael, but she immediately tries to cozy up to him at work. Doctors indicate that Greg's IV was poisoned and the effects of the drug will not be immediately known. Karen meets Jeff Cameron, the assistant producer for her show. Jeff butters up Karen while sleeping with Diane. Paula admits to Karen that she is in love with Greg. Anne Matheson returns. Val is not happy that Danny has initiated adoption of the twins. Gary pleads with Val for them to tell the twins that he is their father. Danny violently reacts when Val says that she will not allow him to adopt the twins. Tom admits to Paige his involvement with Willis, but he says that falling in love with her has changed him.

Harold calls Olivia to apologize, but she says she is having the marriage annulled. The police tell Val that they cannot remove Danny from the home without a court order. Olivia lies to Gary to get money, but later returns it. Karen gives a fan attention, much to Diane and Jeff's concern. Anne makes a play for Greg right in front of Paula. Paige is not happy that Anne is trying to date Greg. Anne suggests to Tom that Paige and Greg may have feelings for each other. Tom later proposes to Paige. Danny throws Val's possessions onto the lawn after she moves to Gary's ranch. Pat is unhappy not practicing medicine. Ignoring Frank's concerns for their family's safety, Pat gets a job at a hospital. Frank tells Pat that he will file for divorce and custody of Julie. Danny changes the locks, insisting he will have Val's house as community property. Olivia joins Harold in Miami. A stalker leaves Karen a creepy note.

Frank disarms Julie. The threatening letter to Karen now gives police evidence to prosecute her stalker. Pat dies after life support is removed. Wayne accuses Diane of being Karen's stalker. Anne forges a blank marriage license so that she can have Paige's trust fund wired into the account she opened. Police find evidence in Diane's home that links her to stalking Karen. Val and Gary work together to get Danny re-arrested. Diane ends up in a psychiatric ward after she is found to have LSD in her system. Greg is the mastermind behind Tom's set up and gives Tom a way out of his trouble. Tom leaves the church before the wedding. Michael arrives to the wedding with Linda. Karen disowns him telling him he is no longer part of her family unless he does not break up with Linda. Michael tells Karen he wants to marry Linda. Jeff is revealed as the stalker and is promoted to producer of the show after Diane's "psychotic break." He has a scrapbook of dead TV personalities with a blank page earmarked for Karen. Gary asks Val to marry him noting it would be a shame to let the church, minister and flowers go to waste. Greg finds a distraught Paige and asks her if she wants to "get outta here".

Danny comes back to the cul-de-sac "born again" with religion now that he has been released from jail. His crime deemed an accident. He arrives at Val's preaching forgiveness. Val, Gary and the neighbors encourage him to stay away. Val agrees to marry Gary. Greg is told by his doctor that his liver is failing. News of his death is in the newspaper. Anne and Paige rush to his side, but he denies his death is any more imminent than anyone else's. Greg's sister, Claudia, arrives with her daughter, who looks a lot like Greg's daughter Mary Frances. Greg suspects her motives. Jeff gives Karen 2 car phones, for her safety. Jeff is planning to kill Karen, setting up a bomb in his apartment that is triggered by a phone call. In the final scenes, Mack and Meg are trying to find Karen and call Jeff's apartment using the car phone. A bomb explodes inside Jeff's apartment.

Jeff terrorizes Karen on the set. Diane calls the police and rescues Karen. Tired of her duplicity, Paige kicks her mother out. Claudia drops by to inform Greg that Anne is broke and that she took a teaching position and is moving to Knots Landing. Val is still looking for Gary with Frank and Mack's help. Danny's body is found and the prior days events are recalled to the police by the neighbors. Anne tries to tempt Greg but he is more interested in what she did with all her money. Paige reconciles with Tom. Gary is safe. He has a broken arm but is otherwise fine. Greg needs a liver transplant. Anne files for bankruptcy. Val learns that Danny drowned under suspicious circumstances, all of his fingers were broken. Anne receives an envelope containing pictures along with a demand for one million dollars, or the pictures will be published.

Nick suspects Anne of the blackmailing, and says that he is going to stay with her and go wherever she goes. Anne's upset that Marco only sent $20,000 for the blackmailer. Paige is angry that everyone at the office thinks she got the promotion for sleeping with Greg. She asks Greg why he treats her like dirt. He asks Paige to marry him, but she walks out. Greg is really starting to get sick. Karen goes back to work. Diane says Karen is an egomaniac, and that she got a new job and cannot wait to leave. Police find a button by the pool where Danny was killed. Ginny decides to leave. Gary tells Val that his dreams have all come true and that he cannot wait to marry her. They go on a family picnic, and the twins run to Gary yelling that something has happened to Val.

After a fall from a horse and hitting her head, Val begins to act strangely. Tom does not like Paige working with Greg, and sucker punches Greg in the elevator after visiting Paige at the office. Anne continues scamming people to try to get money, lying to Nick about having to meet the blackmailers. Tom and Paige break up, Greg then offers her an apartment located next to his office. Val falsely believes the twins are playing with matches, then tells Gary she cannot trust them anymore after they deny it.

Val continues to behave strangely. Julie was home the day that Danny was killed. She explains that a drunken Danny attacked her by the pool, and she ran home. As Danny approached, she slammed the door on him, breaking his fingers. He then stumbled into the pool where he drowned. The police decided against pressing charges. Claudia moves into the cul de sac. Val calls off the wedding. Linda announces to Karen that she and Michael are getting married. Anne has a briefcase with money in it, but Nick replaces that briefcase with one containing a bomb. Paige finds Greg collapsed on the floor.

Doctors discover that Val has a rare virus that is causing her strange behavior, but it is curable. Greg offers Claudia a job as head of his foundation. Mrs. Richfield wants Linda to work on her account with Paige. Paige places a sexy ad on a phone date line and gives Linda's phone number. Steve tells Kate his parents were forced out of their logging business by a big logging company, and his father was killed, and his mother died six months later. He said he got drunk and beat up the company representative, and that has why he was in jail. Steve finds out Greg owns the logging company. Jason's paper on an American hero has won a regional contest, and the final prize is a year abroad in Sweden. Jason does not want to read the paper, because it is about his father. At the ceremony, Jason changes his essay to be about Mack.

Greg tells Steve that he is not entitled to Galveston's money, but gives him $250,000 and says he can either save his logging town or go to the Bahamas. Kate finds out that Claudia lied about her scholarship, and decides to move in with Steve. Julie and Jason go to a party, where a gang stabs their friend Paul. Frank forbids Julie from dating Jason anymore. Brian comes on to Paige and she sees he has a video camera running. She punches him and leaves. Brian then goes to Linda, who agrees as long as she can keep the tape. The next day Brian is missing and so is Linda's tape. Michael buys a van and tells Karen he is leaving to travel the country. Anne's landlord kicks her out. She leaves several messages for Paige that she is desperate, but Paige ignores them. Anne stays overnight at a coffee shop drinking coffee. Anne sleeps overnight on a park bench, and her purse and suitcase are stolen. Everyone she goes to for help is too busy to see her. Steve decides to go back to his logging town, and Kate decides to help him move. Claudia goes to Steve's and hides her gun in his van. Claudia calls the police saying Steve is agitated and stole her gun. The police stop Steve's van and find the gun. Steve tells Kate that having the gun violates his parole. Steve pushes a policeman, and another officer shoots him. Linda cannot find her tape, but finds the one of Paige, and puts it in Brian's car. The police question Paige as she was the last one to be seen with him. The officer calls his partner - and it is Tom Ryan. Frank decides to go back to work for Mack. The gang wants Jason to join them, but Mack and Frank beat them up and they are arrested. Karen is shot with a paint pellet by a group of teens, and chases them in her car. The teen's car is hit by a truck. The kids are all unconscious and bloody. Jason is in the back seat.

Kate blames Claudia for setting Steve up. Anne runs into Benny Appleman, who owes her money. He lets her stay with him, and they try to think up some scams. Linda secretly meets with Brian Johnston. Gary meets Joseph Barringer, a professor who is experimenting with how to capture ocean waves to make energy. Gary is excited by the idea, and wants to back him. While in Toronto for business, Paige meets Pierce Lawton, and is smitten. She waits by the phone for him to call, but he shows up at her apartment. Jason, in the hospital, tells Karen the other teens were the gang members who stabbed their friend. Karen tells one of the boy's mothers off, and then he dies. People make Karen into a hero for standing up to gang violence.

Karen's station insists she have Anne on as a guest. Anne admits on the show to being homeless. Karen tells Val she has lost interest in the show. Karen's producer Debbie asks Frank out, but he feels really old compared to her. Police tell Greg of Linda's murder. Val tries to teach Lynette to read, and they both become frustrated. Paige organizes the Tidal Energy office. They all go out for dinner, and are told that Greg has picked up the check. Kate tells Claudia off, and Claudia's really upset. Karen comforts her and invites her to dinner. When Claudia does not show, she and Mack go to Claudia's and find her passed out on the floor with an empty bottle of pills beside her.

Pierce makes charts about Greg, and decides that his first "line" to him will be Claudia. Greg offers Paige her job back. Greg and Anne go on a date. Karen's boss wants her to do a show about Gary losing his money, so she quits. Alex throws a party for Claudia where he gives her a portrait of her mother, Ruth Sumner Galveston. After the party Alex tells Claudia that he was there when Ruth tried to reach for her medication, but the bottle broke, and instead of helping her, Claudia just stood there and let her die. He says he has the cancelled checks that Claudia sent Rosa every month to keep her quiet. Gary is really hurting as the ranch is auctioned off. The Ewings move back to the cul-de-sac.

Val goes to Florida against Gary's wishes, where she learns that Mary Robeson was Laura's real mother, and Greg had her set up and sent to prison. She calls to alert Karen, but they cannot find Meg. Meanwhile, Greg has threatened Mary to stay away from Meg and leave town. Greg decides to quit, and gives 33% of his company to Claudia, 33% to Paige, and 33% to Meg, with Mack and Karen as her trustees. Alex sleeps with Kate and tells Claudia and Vanessa he genuinely has feelings for Kate. Claudia fires him, but Paige rehires him, so Claudia threatens to tell Kate about his affair with her and Vanessa. Greg sleeps with Paige, but then pulls away, and says he'll be around. He decides to get away for awhile. Anne wants to get back together with him, and tries to find him when she discovers she is pregnant. Gary decides to build low-rent housing in Michigan. He is/H has mad at Val and tells Karen if she does not return in time, he'll leave without her. Claudia puts out a memo to limit Paige's power. Furious, she leaves to go to Greg's. She starts her car, and suddenly Pierce pops up from her back seat.

Pierce pulls a knife on Paige in her car. Alex, realizing that something is wrong, pulls Paige out of the car and beats Pierce unconscious. Pierce is arrested screaming that he loves Paige. Mary returns Meg and tells the MacKenzies that she is Laura's mother. Mary gets a lawyer, Toni Fields, to obtain visitation rights with Meg, but she really wants money. Claudia kicks Alex out. He then decides to crash with Kate. Greg is at a remote cabin, but Anne finds him and tells him she is pregnant. He does not want her to keep the baby, and wants her to leave. She will not, so he goes off hiking and Anne follows. Gary is worried when Val does not return from Florida, but has checked out of her hotel. Pierce tells Paige that his plan was to kill her, then kill himself, so that they could be together forever.

Kate comforts Gary and the twins about Val's death. Gary and Kate start to kiss, but he says he cannot. A memorial service is held, and Betsy runs out, not believing Val is dead. Karen's upset over Val's death. Greg appoints Bill Nolan, an ex-baseball player to his commission. Bill antagonizes Paige, but she agrees to go out with him, and to back the sports complex. Anne confides in Mack that she is not pregnant, but is taking fertility pills. Mack thinks she should tell Greg, but she does not. Anne wants Paige to attend the wedding, but she will not, because she still loves Greg. Before the wedding, Greg tells Carlos he feels like he is going to prison, and has a better idea. Greg lets himself into Paige's apartment, but sees her in bed with Bill. Greg then decides to go to the church and marry Anne.

Greg ignores Anne, so she comes on to Nick but will not sleep with him. Greg tells Anne his heart wants what it wants, and it does not want her. Gary tells Kate he has conflicting feelings, but wants to still be friends with her. Mack calls Karen but she has nothing to say to him and puts Meg on the phone. Greg realizes that Karen has left Mack and uses that as an excuse to invite Mack out to drink with the ulterior motive of convincing Mack to give him Meg's shares of The Sumner Group. Paige asks him for the shares and Mack says he already promised them to Greg, but will give them to her instead. Greg blackmails Claudia to sell him her shares. Treadwell calls Nick and Nick tells Claudia she cannot sell because he gave her the half million dollars, she has obligations and she does not know who she is dealing with. He also wants her to put a disc in the Sumner computer. Out bicycling with the twins, a van knocks Kate off the road and knocks her unconscious.

Tom talks Greg and Paige through disarming the bomb, and they do with 2 seconds to spare. Treadwell is angry that the bomb did not work and that Val escaped. Disguised, Val gets off a bus and dyes her hair brown. She has flowers delivered to Gary with a card that says to meet her, and "I've never seen the ocean." He has Kate watch the twins and meets her. They have a tearful reunion at her motel. He brings her to Karen's, who's shocked, and she tells them about Treadwell. Tom asks Paige to marry him. Nick begs Claudia for money and says Treadwell is after him because he did not kill Greg and Paige. Claudia tells Greg she will tell him where Nick is for $5 million and a job in Monaco. Greg asks Nick where Treadwell is, and Tom comes in and brings Nick to the station. Nick asks for protection, and says he does not know where Treadwell is, but knows someone who does. Nick goes to someone and says that Treadwell is out of control and needs to be stopped. It is Abby, and she tells him she will take care of it.

Treadwell is going to shoot Nick, so Vanessa shoots Treadwell. Tom record it as in self-defense, so no charges are filed. With Treadwell out of the way, Val is free, and she and the twins have a tearful reunion. Gary tells her about Kate, but says he never loved anyone the way he loved her. Kate's upset and decides to go away. Karen and Mack yell at each other, and suddenly realize that things are back to "normal" and start to laugh and cry and kiss. Abby tells Greg that she is Treadwell's partner, and is taking over Sumner Group, because she has information to blackmail him. Greg has bought information from Nick and Anne that documents her and Treadwell's illegal dealings, so she cannot blackmail him. With the money they made from Greg, Nick and Anne decide to live in Monaco together. At the airport they run into Claudia, who is also moving to Monaco. Greg finds that Paige has taken over his office, and she reminds him she owns 2/3 of the company, but he can have her old office. He says that if they work together, they will need to spend nights, weekends, even vacations together. She dips him backwards and kisses him. The MacKenzies and Ewings are having a barbecue to celebrate Val's return. Abby drives up and says she heard Claudia's house was on the market, and walks into her old house. Mack shakes his head, and the rest stand there flabbergasted.