Amanda goes to the press and outs Alexis as her bio mom. Steven meets Luke Fuller, a new gay ColbyCo employee. Krystle gets miffed when Blake refuses to reinstate her as Denver Carrington's PR manager.
Krystle gives birth to a premature baby girl, who doesn't seem likely to survive. Claudia is miffed when Steven and Luke Fuller jet off to Santa Barbara on business. Amanda continues to flirt with Dex.
Krystle and Blake bicker over her dream of raising Arabian horses (with the help of Rock Hudson). Dex is miffed about Alexis' decision to travel to Sumatra to bid Blake's dying father adieu. Jeff and Nicole travel to Bolivia to search for the gold statue.
Blake turns to a rich widow named Lady Ashley Mitchell when he needs help negotiating with a Chinese delegation. Steven decides 'ah fuck it, I'm gay' and hooks up with Luke. Krystle buys her first Arabian.
Amanda moves into Carrington manor when the canoodling between Dex and Alexis proves too much for her to handle. Blake rebuffs Krystle's attempts to include him in her passion for horses. Steven attempts to reconcile with Claudia.
In Acapulco, Amanda meets Prince Michael of Moldavia, while Blake flirtily banters with Lady Ashley Mitchell. Claudia tells Steven she's done being his wife-beard, and Krystle and Rock Hudson share a tender moment after a riding accident.
Rock Hudson declares his love to Krystle, while Blake continues to flirt with Lady Ashley. Prince Michael informs Amanda that he's betrothed to another. After an argument with Alexis, Dex leaves the U.S. to participate in a military mission in Paraguay.
Krystle suspects Lady Ashley of sending compromising photos to her and Blake. Dominique emerges victorious in her company takeover spat with Alexis...then mysteriously collapses while performing at the La Mirage.
Prince Michael proposes to Amanda, who's less than thrilled by the prospect of wedding the dork. Steven continues to tentatively date Luke. Krystle tells Blake she's had enough of his hypocritical shit with respect to Lady Ashley and huffily moves out of Carrington manor.
Prince Michael tires of Amanda's bitchitude and calls off their engagement. Claudia travels to Mexico to file for divorce. Blake confronts Rock Hudson aboard his private plane, and a physical altercation leads to a crash in the mountains.
Jeff launches a search and rescue operation in the Rockies and saves Blake, Rock Hudson, and the hapless pilot. Amanda rethinks her lust for Dex and declares her love for Prince Michael. Krystle moves back into Carrington manor.