Gary and Val move to their new home in Knots Landing that Miss Ellie Bought for them, and then get acquainted with their new neighbors. Sid's 18-year-old rebellious daughter, Annie from a previous marraige, is visiting the Fairgates and is causing havoc among the family. Val attempts to fix Annie's relationship with her father

Sid picks up a young hitchhiker who sets him up by asking him to give her money. When he refuses, she accuses him of rape. Diana has difficulty facing people. Sid's sister, Abby Cunningham, arrives in Knots Landing with her two children. Karen persuades Sid to find a new attorney instead of Richard.

The car with Sid and the FBI agent goes over the cliff. The agent dies, and Sid is left paralyzed. Sid goes into a coma, and Karen keeps vigil at his bedside. Surprisingly, Richard comes to the hospital to offer his support and offers to help Karen with insurance, to loan her money, etc. Gary wants Karen's forgiveness, but she says she can't deal with him and asks him to leave.

Karen hears that the case against Frank and Roy has been dropped due to a technicality. Furious, she barges into the Federal Prosecutor's office, who happens to be Marion Patrick McKenzie. 'Mac' gives Karen info on the case, and kisses her. Karen fires Gary, and hires Wayne, unaware that he has a scrapbook about Sid's death.

Karen is very upset that Diana's gone. Mack is sure that Chip killed Ciji, and they put out an APB for them. Val is dogged by reporters. A "mystery man" helps her escape them. Abby is mad that Mitch is still defending Gary.

Police follow St. Claire's Limousine, but lose them. St. Claire has Abby on a yacht. St. Claire calls for Greg and Laura answers. She tells both Greg and Mac that he called. Cathy comes back to Knots Landing, and Laura invites her to stay with them again. Val admits to Ben she still loves Gary. Karen has surgery.

Laura gets a call to show a house, but it's really Greg who has a romantic dinner set up. At the Fisher's, Mac and Ben follow Harry, but lose him. Val meanwhile tries to break down the door. Mac says he'll get a court order so the Fisher's can't leave, but the Judge won't grant it until there's more evidence. Mac stations men outside their house.

Karen's kidnapper, Phil Harbert, brings her to a guestroom in his home. He's laden it with food and new clothes for Karen, telling her he wants her to be comfortable. He tells Karen she hasn't been kidnapped, she's just disappeared.

After 5 weeks, no one can find Peter. Val grieves over Ben, and makes up with Laura. Abby's really worried about Olivia, who has been having nightmares, and has reverted to infantile behavior. Mack becomes friendly with a man from his messenger service, Al Baker. Paige goes to Greg, concerned about her paternity.

Karen tells Abby and Gary that Michael and Paige are being held hostage, so they clear the marina. Mac goes to Mexico. He is beaten up by Manny's men and tied up in a room with Chavas. Manny and Harold have Mac call Karen to let them unload the drugs with no interference.

Not knowing whether to trust Greg or Ted, Paige finally chooses Ted and has him bring her home. He wants her to give him the key, but she gives him a fake one

Not knowing whether to trust Greg or Ted, Paige finally chooses Ted and has him bring her home. He wants her to give him the key, but she gives him a fake one

Kate blames Claudia for setting Steve up. Ann runs into Benny Appleman, who owes her money. He lets her stay with him, and they try to think up some scams. Linda secretly meets with Brian Johnston. Gary meets Joseph Barringer, a professor who is experimenting with how to capture ocean waves to make energy.

Pierce pulls a knife on Paige. She jumps out of the car. Alex is there, and punches Pierce out. Pierce is arrested screaming that he loves Paige. Mary returns Meg and tells McKenzie's she's Laura's mother.

The mini-series opens up when recently unemployed factory workers turn to Mack MacKenzie for help in suing Greg Sumner for wrongful termination. When Sumner bought the factory from Gary Ewing, he fired everyone regardless of the written agreement he signed promising not to close the factory.