Blake buys back his racehorse Allegre from owner Daniel Reece, who sends Krystle a gift. Furious, she demands to know how he dare approach her after what happened with her sister, Iris. Amanda learns she is Blake's daughter. Blake, meanwhile, has contacted his father, who claims that Dominique is not his daughter. Claudia confesses her affair with Dean Caldwell to Steven.

Krystle reconciles with Daniel, who reveals that his break-up with her sister was amicable. Dominique, bitter over Blake's continued refusal to acknowledge her as a Carrington, considers a number of alternative courses, including a generous offer from Alexis for her share of Denver-Carrington. Claudia moves into La Mirage. Krystle confides to Steven that Daniel is Sammy Jo's father and therefore little Danny's grandfather. Jeff and Nicole find the missing piece of a map that DeVilbis and Fallon had shared in the hope of finding buried treasure. Blake's father suffers a heart attack.

Krystle begins working with Daniel. Blake is adamantly opposed and exchanges harsh words with Reece. Dex is furious with Alexis for traveling to Sumatra to see Blake's father. Alexis learns from Amanda of Dex's experience with Daniel in Vietnam. Jeff and Nikki follow the treasure map to a remote jungle location and find a statue filled with jewels, as well as a woman who has been impersonating Fallon. Jeff awakens the following day and learns that while celebrating, he and Nikki were married.

Krystle launches her new business with the purchase of an Arabian horse. Sexual tension between Steven and Luke mounts. Jeff and Nikki return from Bolivia with the news of their marriage and they move into the mansion. Alexis is intrigued with Blake's recent meeting with a delegation from China. It was arranged by Lady Ashley Mitchell, an internationally known photojournalist and widow of a wealthy British lord. After Lady Ashley and Blake enjoy a lovely dinner together, she impetuously kisses him.

Blake returns triumphant from his negotiations with the Chinese. Alexis vows to buy into the venture. Krystle, uncomfortable with Daniel's increasing attention, avoids him. Blake, absorbed in his business, is distracted by Lady Ashley. Steven's on-going affair with Luke ends abruptly when he decides to return to Claudia. Blake invites Amanda to accompany him on a business trip to Acapulco. Alexis learns of the trip and invites herself and Lady Ashley.

Alexis attempts to persuade the head of the Chinese delegation to hire Colbyco. Blake is surprised to learn Lady Ashley is an Acapulco. Amanda has a romantic fling with Prince Michael of Moldavia. Claudia meets with Luke, asking him to honor Steven's request that they remain apart. Krystle makes a surprise visit to Daniel, who hurriedly hides maps and plans detailing a secret military maneuver. While riding, Krystle is thrown from her horse. Relieved she is unhurt, Daniel kisses her passionately.

Claudia flies to Mexico to divorce Steven. Unexpectedly, Adam appears at her hotel and they spend the night together. After Amanda embarrasses Prince Michael at Dominique's party, his patience is exhausted and he leaves her. Jeff's infatuation with Ashley grows. Dex rescues Daniel, who goes immediately to see Krystle. Relieved he's alive, she embraces him and he misinterprets her affection. Blake is enraged. While airborne with Daniel on a private plane, the men fight and knock the pilot from the cockpit, throwing the plane out of control.

Dex tells a devastated Krystle that Daniel Reece is dead. Steven is outraged when Sammy Jo decides to fight for custody of her son in court. Amanda and Alexis arrive in Moldavia and are greeted by Prince Michael and his father, King Galen. Jeff proposes marriage to Ashley. Sammy Jo learns that although she's Daniel's beneficiary, her monies will be held in trust with Krystle as executor. Finding former fiancée Elena in Michael's arms, Amanda tosses her engagement ring at the prince and dashes out. Yuri watches from the shadows as Dex comforts her.