As Angela prepares to travel to Greece, she leaves her grandson Lance in charge, though under the strict supervision of her reliable foreman, Frank Agretti. Since Daniel, an unsuccessful author, has turned to gambling, drinking and brutality, Emma has become a battered wife. To escape her troubles, Emma turns to another man, Charley, for much-needed affection. In an effort to get out of prison, Richard decides to testify against his co-conspirator, Michael Sharpe. Richard evades an attempt on his life meant to stop his testimony. Accidentally getting her finger stuck in a pool drain, Maggie drowns. Angela hires a private investigator to tail Pilar.

Emma's old friend Charley arrives just in time for Maggie's funeral. Although Angela disapproves of Charley and changes her vacation plans, Emma stands by Charley despite Angela's interference. Michael Sharpe takes his revenge on Richard for his testimony against him by having Richard's children removed from his custody. Aware that Angela is trying to break up his relationship with Emma, Charley places a pillow over Angela's face and suffocates her.

After being found unconscious, Angela is rushed to the hospital, where she slips into a coma. Lance has a difficult time managing Falcon Crest without Angela, particularly when business associates insist on negotiating with Angela, but fortunately, Pilar is able to help Lance deal with their distributor, Ned Vogel. Richard discovers that Michael was instrumental in Richard's loss of custody over his children. A power outage at the hospital forces the family to consider pulling the plug on Angela's life support.

With his continued influence over Emma, Charley upsets the family. After the bank calls in its loan, Richard saves Falcon Crest from Michael Sharpe. Encouraged by his sister-in-law, Genele Erickson, Frank Agretti goes to the bank with the power of attorney which Angela had given him prior to her aborted trip to Europe and takes over operation of Falcon Crest.

As Michael Sharpe arranges for Richard to be killed, the contract eventually goes to Sal, Richard's acquaintance from prison. Instead of killing Richard, Sal offers to help him get back at Sharpe, but later pays with his life when Sharpe learns that Sal double-crossed him. After Sydney defies her husband and befriends Emma, Ian beats her. In order to get rid of Lance, Charley shows him a videotape of Pilar's liaison with Ned Vogel. Despite Pilar's pleas, Lance leaves enraged, just as Charley had hoped.

With a bullet wound in the chest, Charley disappears from Falcon Crest. Because Chris Agretti is missing, Sydney worries that Ian and Charley might have killed him. Sharpe gains control of Falcon Crest by threatening to press criminal charges against Emma for authorizing the release of tainted wine. Sharpe's son Danny provides his father with crucial evidence, which he found while on a date with Sydney. Richard suspects that Lauren's marital situation is worsening, while Lance resists renewing a sexual relationship with Pilar.