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Joe succeeds in convincing Kelly of his innocence and ends up marrying her. Mad of rage, Peter Flint loses the reason and becomes the carnation killer : he murders fair women whom he takes for Kelly, of which in particular Summer Blake and his secretary, Veronica Gayley. He finally kills Joe after his wedding and is shot by the police officer Cruz Castillo.

It is discovered that Sophia is finally alive, but her arrival at the Capwells is rather distant. She is accompanied by her son-in-law, Marcello Armonti, who accuses C.C. to be responsible for the death of his parents during the Second World War. For his part, C.C. marries Gina to keep near him his grandson Brandon. Gina, in order to offer a descent to C.C., has an adventure with Mason !

Cruz, convinced of the innocence of his friend Joe even after his death, continues to investigate on the death of Channing Junior. He organizes a reconstitution of the famous evening in C.C.'s office, where Sophia suddenly remembers to have shot at her son ! She thought in fact that it was Lionel and that the revolver was empty, but C.C. had just charged it.

Amy Perkins, Joe and Jade's sister, gives birth to a boy, immediately kidnapped by her doctor, Dr. Renfro. This last one works in fact for the cousin and perfect double of Jack Lee, Jerry Cooper. Jerry kidnapped Jack and took his place as the lawyer of C.C. and the lover of Julia Wainwright, Augusta's sister, recently arrived in town. Julia, Amy, and her boyfriend Brick Wallace join New Stailand island to release Jack and little Johnny, prisoner of the king of the island who turns to be his grandfather.

On his side, Ted is harassed by Christie DuVall who wants him to break with Laken. Christie is thereafter raped by her step-brother, Steve Bassett, who forces her to accuse Ted of the rape. Steve, assistant of the district attorney, arrests Ted. Christie finally innocents him and kills Steve by accident. Christie's sister, Sister Mary, arrives in Santa Barbara and Mason falls in love with her.

Kelly falls in love with the photographer Nick Hartley, a Vietnam veteran. His brother Dylan joins him, in search of a treasure, pursued by a trafficker named Carlo Alvarez.

The wedding ceremony of Eden and Cruz is stopped by a fire at the Capwell hotel. A second drama follows a few times later, with the cave-in of the tunnel connecting the Capwell and Lockridge mansions. Augusta Lockridge, who goes out of there blind, breaks with Lionel and has an affair with another man. She finally recovers the sight and returns with her husband.

C.C., with the help of Santana, surprises Mason in bed with Gina. To be avenged, this last one reveals to his father that Channing Junior was gay and that he was actually the fruit of the love affair between Sophia and Lionel ! This double shock makes C.C. falling in coma for many weeks. Gina, discovering that C.C. wanted to divorce and thus to disinherit her, pulls the plug on his life support system, while letting Eden think that she is the author of this act. However, C.C. survives and Eden breaks with Cruz, who believes her guilty, for Kirk Cranston, an employee of the Capwell Enterprises.