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Eden finally decides to stay with Cruz and Robert then turns himself towards Kelly. Tonell is killed and it is at this time that the identity of his wife is revealed : it is Augusta Lockridge ! Robert has still details to regulate with Tonell's men and, because he does not want to put Kelly in danger, leaves the town. During his absence, Kelly flirts with Craig Hunt, one of Tonell's men. She however goes back to Robert at his return. But Robert was kidnapped by his twin brother, Quinn Armitage, and by Flame Beaufort, the fiancée of this last one. Quinn replaces Robert and marries Kelly. Cruz saves the real Robert, prisoner in a work camp in Louisiana, but this last one is killed by Flame. In Santa Barbara, everyone thinks that it is in fact Quinn who is dead.

Gina's mother, Phyllis Blake, arrives and settles with her at the Lockridge mansion. But Laura burns the house when she discovers the relation between Gina and her husband. Gina, Brandon and Phyllis then move in the caravan of Mack, Gina's brother. Laura is sent to an asylum, but escapes with the complicity of her roomate, Annie DeGeralamo, in the purpose of killing Ethan. She unfortunately misses her target and kills Sasha. Laura recovers the body and puts it in Mason's home to make him being accused. Mason and Julia hide the body in their freezer and see their house haunted by Sasha's ghost ! Sasha's sister, Sydney Schmidt, helps them to frighten Laura to make her acknowledge her crime.

Lionel, back in Santa Barbara, tries to recover art paintings remained hidden in the tunnel leading to the Capwell mansion, of which he had sold counterfeits to C.C.. Gina, with the assistance of Phyllis, pretends to be blind to steal these paintings, but Lionel surprises her. Together, they decide to sell the originals to an Asian investor, but each one on his side, without the knowledge one of the other, replaces the originals by copies. When the purchaser discovers he has been misled, he kidnaps Augusta and Lionel is obliged to sell the Lockridge mansion to C.C. to get the money for the ransom.

Ethan and Craig, just like Derek Griffin and Stephen Slade, turn to be orphan. As a child, an orphan named Cassandra Benedict, who was living at the Capwells, was killed in the now famous tunnel. The four men seek to avenge her death. Derek accuses Mason and tries to kill him. But Cassandra is in fact alive and arrives just in time to stop him. Derek and Ethan are sent in prison, this last one to have tried to bribe the judge for Derek's release. During this time, Stephen convinces Sophia to take again her job of actress. He directs a movie with her, Journeys, which turns to be a disguised biography of the Capwells. Before being released, the film is destroyed in a fire. Cassandra's prints are found on the place of the damage, but she is not worried.

Cruz meets Nikki Alvarez, a Mexican secret agent. Nikki joins the police force, in the purpose of succeeding in saving her brother, Amado Gonzalez, of dealers. Nikki's ex-boyfriend, Marcos Llamera, under drug influence, kidnaps Nikki and Michael on the island of his boss who turns to be... Kirk Cranston ! Cruz delivers his friends and arrets Kirk. When Cruz comes back to Santa Barbara, a shaman, an old Indian on the point of death, offers to him a talisman supposed to offer super capacities to who carries it. Cruz then escapes from death on several occasions before being kidnapped by a pasha who wants to use his capacities against him and to welcome Eden in his harem ! Cruz fortunately escapes, with the help of Eden and Michael.

Mason's alcohol problems reappear and threaten his marriage with Julia. Mason is now in charge of the new project of the Capwell Enterprises, Oasis, and is opposed to Blue Sky Brigade, an ecologist movement managed by Dash Nichols, who reproaches Oasis to harm to environment. Julia, then Dash's lawyer, ends one evening by sleeping with him. The following night, Dash forces her to do it again, without realizing that he becomes brutal. Julia then prosecutes him for rape, but Dash is cleared thanks to Keith Timmons, returned at the post of district attorney. Dash has then an affair with Julia's psychologist, Dr. Denise Foxworthy. But when Julia kidnaps him to make him admit his faults, he realizes the contents of his acts.

The Blue Sky Brigade offices are destroyed by Harland Richards, an investor of the Oasis project. Nikki Alvarez is killed in the explosion, whereas she was going to marry Michael. Harland's wife, Gretchen, has an affair with Mack, while her daughter, Tawny, falls in love with Ric. Harland ends up revealing that he changed of identity a few years ago and that he is actually Ric's father, born from a relation with Carmen Castillo. Realizing that they are half-brother and sister, Tawny and Ric get separated.