Jackie finds out she’s pregnant and continues to confide in Bob. Elly puts two and two together and realised there is an attraction between Bob and Jackie. She tells Bob he should step back from Jackie on a professional level. Singer Sandra Watson AKA Casey Watts returns to town but is undercover and asks Lisa, Chris and Ernie to hide her from her manager. Rhonda starts teaching English to Italian man Enzo. However he strikes up a relationship with Ernie’s sister Lilian. Jackie arrives at Bob’s house and asks if she can stay. She says they could spend the night together with no one knowing; Bob says no.

Jackie tells Craig she’s pregnant. She thanks Bob for his support and friendship and apologies for crossing the line. Sandra spends time with Lisa and Chris who spend time reminiscing about their childhoods. Sandra performs at Patchetts Pacific however the crowd do not appreciate her gritty song which is far removed from her bubblegum pop image. Bob tells Elly he will be staying away from women moving forward. She sabotages his interview for a new housemate when she becomes jealous. During another argument, Craig tells Jackie she can’t go through with the pregnancy. She stabs him and continues to cook dinner whilst he sits bleeding. Craig calls for help and Elly and George arrive. Jackie is asked to come to the station and runs back into the house before George can get her. Bob manages to get into the house and talk Jackie down.