When Chase Gioberti (Robert Foxworth) learned that he lost his father (Harry Townes), two feuding heads of a California wine-producing family chose to put all their moments behind for Jason Gioberti's funeral. When younger daughter, Emma Channing (Margaret Ladd) was responsible for her uncle's death, Angela Channing (Jane Wyman) tyrannical matriarch and owner of Falcon Crest, protects and calms her. When Chase's family heads back to New York, after the death of his father, he begins to remember all the fun times he had with his father. It was also Chase's call for his wife, Maggie Gioberti (Susan Sullivan) and children, Cole (William R. Moses) and Vicky (Jamie Rose), to move to their own house in California, at Falcon Crest, after a year's sabbatical that has taken a toll on his family. Unhappy with Chase's family moving back to the vineyard, Angela comes up with a way to forsake them, consequently, her grandson, Lance Cumson (Lorenzo Lamas) was shocked to hear about her decision for a competitive family to go back east.

When Angela couldn't tolerate Lance's irresponsible behavior, she prevents her grandson from becoming the proud owner of Falcon Crest, therefore, she kicks him out, much to her contempt. Discovering from him of his grandmother's feelings towards him, he tries to please Angela by blowing up Chase's pump house and cause a fight in the springhouse, and later gets arrested, before he gets grounded by Angela, not Julia (though she told Lance, her mother was under the impression, who also gave Lance to him, away from Julia, as a little boy)! Once grape harvesting begins, Lance tries to please Angela, again, by paying off Chase's staff, afterwards, to make Lance jealous, Angela escorts Cole into becoming the new heir of Falcon Crest, who straightens out with his father about Chase's staff losing pickers. Cole learned about this, he takes the keys and the car back to Angela, returning to his parents' house. Lance told Angela about his actions, and the staff, before Chase confronts Angela about her doings with Cole and about Chase's staff being gone and demanded that the staff returns, early in the morning.

When Emma's lover, Turner Bates, who was on the scene when Jason died, returns, Chase informs him that Jason supposedly died in a car crash. Knowing this to be untrue, Turner seeks Emma to learn what happened after he ran from the scene on the night of Jason's death, but Angela throws Turner off her property. Turner sneaks back, steals Emma away and romances her in order to learn the truth. Unable to obtain any straight answers from Emma, Turner tries to blackmail Angela, who in turn calls in the police, and Turner, after a car chase, is accidentally killed. Chase and Lance pull Emma out and save her. When Maggie says that she may be pregnant, the Giobertis try to cope with the effects that it would cause.

Angry with her parents for their excessive protectiveness, Vicky runs away from home to San Francisco, where she's lured into a wayward street life that she can't escape. Chase and Maggie frantically search for Vicky, unaware that Lance has introduced their vulnerable daughter to a woman connected with pornographic films. The Giobertis become stronger than ever when Chase and Maggie endure a difficult ordeal before locating Vicky. Angela toys with Douglas's emotions, playing him against a renowned painter and making Douglas look like a fool.

Maggie's news assignment on vineyard worker's lifestyles becomes a personal concern to the Giobertis when Maggie's interviews reveal that an extortionist is terrifying Falcon Crest employees. Puzzled as to why undocumented workers suddenly stop working for him, Chase urges Maggie to find out the reason through her interviews. When Chase learns that a man is blackmailing the vineyard workers with threats of deportation, he, despite Angela's warnings against becoming involved, manages to rout the extortionist. When Emma discovers that she is pregnant, Lance realizes that the last thing he needs is another heir competing for the Falcon Crest fortune. Consequently, Emma tumbles down a flight of stairs and has a miscarriage.

Chase begins to make inquiries into the circumstances surrounding his father's death. Angela, in an attempt to foil Chase, has Philip mislead Chase into believing he might inherit Falcon Crest. However, Chase doesn't fall for her trickery. Following a party at the Giobertis, Cole's friend is killed in an auto accident after Cole refuses to drive him home. Angela attempts to force Lance to marry Melissa, who instead has become deeply involved with Cole. However, when Melissa learns she is pregnant, she tells no one.

While Emma draws closer to revealing the truth about Jason's death to outsiders, Chase steadily draws closer to learning the truth through his investigation. No longer speculating over his father's mysterious death, Chase finally gathers enough concrete evidence to go to the D.A., who in turn, calls for a coroner's inquest into Jason's death. While Angela attempts to impede this, she is forced to testify. Following his release from the hospital, Douglas tries to help Emma and escorts her to the inquest. However, before she can testify, Douglas has a fatal seizure and dies. After witnessing this, Emma runs off while Angela blames Chase. Angela learns of Melissa's pregnancy following a disastrous honeymoon and assumes Lance to be the father, despite his denial.

When Douglas is buried, Angela tries to keep Emma sedated to prevent her from testifying. Angela could lose Falcon Crest to Chase if his attorney can prove that Jason died under suspicious circumstances. When the coroner's inquest resumes, the D.A. mounts a circumstantial case that is easily rebutted by Philip when Emma is unable to testify. Defying her mother, Emma manages to escape from Falcon Crest and arrives to take the stand, confessing how she accidentally pushed Jason to his death while he fought with Turner Bates. The jury rules that Jason "died at the hands of another," thereby giving Chase control of Falcon Crest, but he magnanimously offers fifty percent of the vineyard to Angela. Though Angela detests the thought of sharing Falcon Crest with anyone, she has no choice and accepts. Another threat looms as Angela learns of Douglas's illegitimate son, Richard Channing, who has inherited fifty percent of The Globe.