Recap: A contrite looking Dex drops by Alexis' hotel room to renegotiate the terms of their tar sands deal so that it'll be a 50-50 partnership. Alexis chuckles approvingly and asks him whassup with his change of heart, and he says that while he doesn't mind regularly screwing men over, he has a hard time taking advantage of women he wants to hit the sheets with. He saucily adds, "Call me a romantic" and gives her a big smooch...and when he gets a clear signal that she's into it, he picks her up, carries her over to the bed, and mounts her.
Fallon is in bed with Peter while he's on the phone, attempting to sell his race horse, Allegre. When the person he's talking to declines to make the purchase, Peter tells Fallon he plans to put the word out in order to find a new buyer. Fallon asks him to hold off on that, 'cause she might know someone who's interested...and by someone, Peter correctly guesses that she's talking about her sainted father. She suggests they fly out to Denver asap so she can introduce him to the old goat, and then the two start smooching.
Blake and Krystle wake up in bed together. Naked. Blech. Krystle half-heartedly suggests that she should probably be getting back to the La Mirage, but Blake asks her to stay 'cause he wants her by his side when he announces their engagement to the family at breakfast. He then coos about how good it feels to hold her again - ick - and that the mansion has been very empty without her.
Adam joins Jeff and Kirby in the breakfast room, which...awkward. A few seconds later, Blake and Krystle sweep into the room, looking flushed and happy. Blake dismisses the servants and announces that Krystle has once again agreed to be his trophy wife - legally, this time - then asks them to keep mum about it so that he can make a grand announcement at the upcoming Carousel Ball. Jeff, Kirby, and Adam react to the news by mutely staring into space...and Blake looks bemused by their collective glumness. A few seconds later, Jeff, Kirby, and Adam muster up enough enthusiasm to congratulate the happy couple, then all three abruptly leave the room.
Kirby and Jeff head over to the study and quietly agree that it would be best to keep the news of their impending divorce under wraps until after Blake's/Krystle's wedding...and, to that end, Jeff says he'll move back into their bedroom to keep up appearances. After Jeff exits the study, Adam slinks in and tells Kirby they need to talk. He whines about how neither she nor Jeff will talk to him, then asks what's happening with his spawn. She glares at him and snaps, "I'm carrying it" and adds that it's no concern of his. Adam argues that she can't very well go through life pretending that the child is Jeff's [of course she can; women in soaps do it all the time]...and suddenly Jeff re-enters the study, angrily shoves Adam away from Kirby, and escorts her upstairs.
Kirby tells Krystle that both Adam and Jeff know the icky truth about her baby's paternity. Krystle offers to break the disturbing news to Blake - but Kirby asks her not to 'cause she doesn't want anything to spoil their special day. Krystle stares back at her, her face scrunched with pensive concern.
Adam invites Tracy to be his date for the Carousel Ball...and she excitedly accepts and gushes about how it's the "party of parties". She then remarks on his bummed mood and asks what happened to the charmer of two episodes ago. He cryptically says his charm has disappeared into the ether now that his world has suddenly turned on its ass.
Alexis and Dex are on his private plane, en route back to Denver. As Alexis reads over the tar sands lease agreements, she notices that Dex has titled their partnership the Lex-Dex Corporation. That's a nice, catchy name. Alexis is impressed that he gave her top billing...then tells him that last night's doink was great and all, but that they should probably forget about it now that they're headed back to Denver, aka reality. Dex urges her to not pretend as though she doesn't want him as much as he wants her, then tries to plant a big smooch on her - but she stops him and says she's been around the block too many times to think of their coupling as anything more than a casual hook-up. Dex disagrees, then lays it on like manure about how beautiful, bright, and exciting she is. Alexis rethinks her rebuff and allows him to kiss her, then giggles and says he sure doesn't take rejection easily...and Dex huskily retorts, "I don't take it, period", calls her spectacular, and smooches her again. Oy.
Steven greets Alexis when her plane lands...and she introduces him to Dex as her "new partner". Dex gives Alexis a goodbye kiss, refers to her as darling, and sexily strides off...and a slightly icked out Steven tells his mother he hopes that this new partnership/courtship works out for her.
At Denver-Carrington, Fallon introduces Peter to Blake, and the three talk about Peter's quest to sell half interest in Allegre. Blake seems intrigued by the opportunity to own half of a race horse, so Peter tells him he'll arrange for the horse to be flown to Denver so he can look it over.
Krystle is in her office, preparing for a press conference, when Fallon bursts in, hugs her, and congratulates her on her engagement. Krystle thanks her for her support and tells her that she too looks like she's been getting regularly laid...and Fallon coyly says she'll be bringing her sexy new beau to the La Mirage for dinner, and that both she and Blake are invited.
Jeff bumps into Peter near the elevators, and then Fallon suddenly appears and introduces the two men. Peter scrunches his face in confusion about why Fallon and Jeff have the same last name...and Fallon avoids giving an explanation by telling Peter that they urgently need to leave so they can get him checked in at the La Mirage.
One week later, Peter has brought Allegre to Denver and is showing the horse to Blake. Fallon and Krystle arrive at the stables, and Blake proudly tells Krystle - surprise! - his wedding gift to her is that she now owns half of Allegre. Krystle pretends to be thrilled with the odd gift and gushes about how gorgeous the horse is...and the two hug happily.
Carousel Ball! A large swath of paparazzi snap photos as the Denver elite arrive...the elite being Dynasty cast members, as well as famous public figures like Gerald and Betty Ford and Henry Kissinger. Alexis, who's decked out in a shimmery, crusty looking gown with layered poofy things for sleeves, gives Claudia a dismayed once-over and remarks on the color of her boring sack of a dress (which probably is a little too plain for a fancy schmancy Dynasty ball), then bitchily asks, "It's off the rack, isn't it?" When Claudia smilingly confirms that it is, Alexis sighs disapprovingly and says she really wishes she had consulted with her designer, 'cause she's already seen several people at the ball wearing something scarily similar. Steven deludedly insists that Claudia is the most beautiful of all the dress-alikes, then shuts Alexis up by asking her to dance.
While on the dance floor, Steven orders his mother to stop trying to make Claudia over in her '80s tacky, over-poofed image...and Alexis reluctantly agrees to give her constant criticism of her frumpy daughter-in-law a rest.
Krystle accepts a dance from her physician so she can inform him that now that she and goat daddy are remarrying, she would like to revisit the issue of having a child. The doctor looks surprised and says he thought it was a closed subject [due to her abnormal uterus, as was documented in Season 2's Miscarriage episode], but Krystle says she doesn't want it to be. I sense an implausible pregnancy in the near future.
Alexis circulates around the ballroom and - ack! - runs into disgraced ex-congressman Neil McVane. She accuses him of trying to kill her when she was in the hospital after the cabin fire - and he denies having anything to do with that, but likes the sound of that idea and murmurs, "Maybe next time." Haha.. Alexis summons Mark, who's sitting at the nearby bar, so that she can gloat to McVane about how she now has a bodyguard...and says he'd better watch his step. After she flounces off, McVane snidely reminds Mark that he too was suspected of setting the cabin ablaze, and says if he hasn't yet considered murdering Alexis, he should definitely give it some thought.
Blake grumbles at Dex about his newly formed partnership with Alexis and says he should be more concerned about his obligations to Denver-Carrington. Dex reminds him that he earned half his fortune with joint ventures and that this was a business decision, not a personal one - but Blake barks, "No deal is a good deal with Alexis!" then threatens to kick him off his board if he ever goes behind his back again.
Fallon and Krystle run into Alexis in the powder room. When Alexis notices the ginormous diamond rock on Krystle's finger, Fallon smugly confirms that - yep - it's an engagement ring from Blake. Alexis asks when the wedding is, and Krystle says they haven't set a date yet...then snidely adds that the guest list will be limited to family, and by family she means not Blake's ex-wife. Alexis rolls her eyes in irritation as she spritzes herself with perfume.
Blake takes the mic and makes the big announcement about his and Krystle's upcoming nuptials, and gabbles about how happy he is to share the news with a ballroomful of his closest friends. The guests smile and politely clap - except for Alexis, who shoots them a prolonged stink-eye.
Steven tells Claudia that if marrying his old goat of a father makes Krystle happy, then by golly he's happy for her. Claudia urges him to make amends with his father - but Alexis, who overheard the comment, makes a blech face and snappishly tells her to not bother herself with Steven's and that man's dysfunctional relationship. Steven prevents further argument by asking Claudia to dance, leaving Alexis glaring after them in annoyance.
As Tracy dances with Adam, she wonders aloud if Krystle will continue working at Denver-Carrington...or settle into being a trophy wife and leave the running of Denver-Carrington's PR department to someone who's actually qualified for the job. Adam chuckles and calls her ambitious.
Steven and Claudia congratulate Krystle and Blake on their upcoming wedding...and then Steven and Blake stare at each other awkwardly. Eventually Steven sticks out his hand and says he's very happy for him, and Blake shakes it and welcomes him back into the fold. Krystle and Claudia beam happily as father and son hug.
Alexis tells Adam that now that Blake and Steven have made up (for the umpteenth time), there may no longer be a place for him in Blake's life. She asks him what he thinks Blake would do if he found out about his past drugging, and Adam is all, "Wha-a?", then realizes the real reason she cancelled the ColbyCo/Denver-Carrington merger: she didn't want Blake to stumble across the truth. Alexis hugs her mentally defective son and assures him that he can always come crawling back to her if ever he feels alone.
Peter bumps into one of the servers and then berates him for being a careless idiot. Jeff witnesses the incident and tells him to chillax 'cause it was just an accident, and Peter snaps at him to mind his own business. Fallon suddenly rushes over to Peter and asks him if he'd like to ditch the party and watch the sunrise, and he says he definitely likes the sound of that - but suggests they go flying and watch it in mid-air.
Adam tells Steven he's happy he's back in the family, and apologizes for being an unsupportive douchewad while he was going through his custody lawsuit problems with Blake. He solemnly says he now understands how strong a father's love for his child can be...and Kirby, who's sitting nearby, overhears the remark and starts twitching with revulsion.
Peter is irritated that it's taking the valet so long to retrieve his car, so he bitchily declares that he's going to get it himself and stomps off. Jeff appears and asks Fallon how well she knows this piece of Euro-trash she calls a beau, and Fallon coquettishly admits she doesn't know much (er...anything) about him - but that she intends to get to know him very well. As Jeff tries not to hurl at that visual, Peter pulls up in his luxury car, and Fallon climbs in and the two squeal off.
Blake is staring at Krystle with creepish intensity as the two sway together on the dance floor. Jeff and Kirby come by to congratulate them again and say goodnight...and Blake shakes his head with dismay at the obvious unhappiness in their marriage.
Jeff arrives at the airstrip, where Peter's fancy car is parked, and stares up at the small plane that Peter is piloting (with Fallon in the passenger seat) as it does scary looking aerial tricks in the sky. Fallon woots excitedly and exclaims, "Do it again!" ...and after a few more minutes of fancy flying, Peter lands the plane. As the two exit the tiny aircraft, Jeff storms over, grabs Peter, and barks, "You could have killed her!" Fallon tells him to back off, and Peter bitchily reminds him that Fallon is no longer his wife. Jeff reminds him that she's still the mother of his child, and that anyone who puts her in danger is going to have to answer to him.
The end (for now).