Karen meets Marion Patrick "Mack" MacKenzie after barging into the Federal Prosecutor's office, where he is handling Sid's case. Gary tries to talk to Val following their split and Abby sends J.R. chapters from Val's book "Capricorn Crude".

J.R. comes back to Knots Landing following a deal with Abby. In the meantime, Mack and Joe talk Karen out of going after the people who murdered Sid and Laura prepares to give birth.

Gary wants to get back with Val and even Lilimae tries to help. He also becomes entranced by a beautiful singer called Ciji. Mack continues to help Karen and Ginger becomes jealous of Ciji and Kenny's working relationship.

Karen looks through KLMotors books to find checks from West Century Auto, Frank and Roy's company, whom she believes are Sid's killers. Karen also invests in Richard's restaurant after hearing about money worries from Laura. Val meets her new publicist, Chip Roberts.

Gary must go to Dallas for the reading of his father's will and asks Val to accompany him, but she refuses. Abby wants to go with him but he doesn't ask her, and she is furious with him after later discovering he asked Val. Richard opens his restaurant "Daniel". Ginger is upset about Kenny's attentions toward Ciji's career and not hers. Karen and Mack finally get a confession from Sid's murderers.

Following the reading of Jock's will, Abby surprises Gary. Meanwhile, Val comes to Dallas to promote her book and Chip talks Lilimae into letting him stay with her.

Abby's mad when Gary and Kenny decide to go into business together to produce a record for Ciji, and then promises money to Richard. She tells Gary if they don't have a partnership she will leave him. Abby makes Richard sign a contract that she will be in control of Gary's investment in Daniel, and if he doesn't sign, she'll make sure he doesn't get any money. Val is upset that Lilimae invited Chip to live with them. Lilimae introduces Chip to Ciji, and they're attracted to one another. Diana gives Chip a car from KLMotors. Karen and Mac go camping for the weekend, ...

Abby and Gary move to a beach house together. Val becomes suspicious of Chip. Chip tells Ciji that he is dating Diana, which is helping her career.

Laura discovers Richard took money from Abby. Abby is jealous of Gary and Ciji spending the day together. Diana discovers Mack with another woman and she tells Karen. Mack confesses his love to Karen but she doesn't reciprocate.

Diana needs a kidney transplant but the family aren't compatible matches so Karen asks Abby to be tested. Karen lets Mack comfort her during the ordeal. Ginger writes a song and shows it to Kenny who has Ciji sing it, which infuriates Ginger.

Abby initially refuses to donate her kidney to Diana until she is talked around. Chip tells Diana he loves her and presents her with a necklace, which was originally for Ciji. Laura and Ciji become friends.

Mack's father, Pete, returns to his life and begs for forgiveness as he is dying. Chip wants Ciji to sign a contract which will make him entitled to her earnings. Karen throws a party in the cul-de-sac and Diana sees Chip kissing Ciji.

Abby sells Ciji's contract to Jeff Munson. Jeff wants Kenny to produce Ciji, but Abby will only sell if they cut Kenny out of the deal. Abby goes to Gary's lawyer, James Westmont, and wants him to protect her interests in case Gary doesn't marry her. Ciji tells Chip that she's pregnant, and Chip yells that this will ruin everything and manhandles her. Val has been putting off signing her divorce papers but eventually signs them.

Kenny and Gary almost have a fight over Abby's deals. Mack proposes to Karen and she accepts.

A tabloid newspaper prints Val's new manuscript about her break-up with Gary. Chip lies to Lilimae about Gary cheating on Abby with Ciji and Val overhears. Karen and Mack get married in Las Vegas.

Mack moves into Karen's home, which results in mixed feeling within the family. Gary begins to drink again because of Abby's scheming. Richard tells Laura he dislikes her spending so much time with Ciji. The rumours of Gary and Ciji's supposed affair are out in the open.

Gary wakes up in Ciji's bed. Abby threatens Ciji to stay away from Gary. Ciji confides in Laura about everyone hating her as she hasn't done anything wrong. Richard accuses Laura of having a lesbian affair with Ciji. Abby has a clause put in her contract that gives her full power if Gary's alcoholism continues. Ciji discovers an old newspaper clipping Chip had been keeping about himself that says he is being sought for beating up a woman and that his name is actually Tony Fenice.

Laura throws Richard out after he confronts Ciji and physically attacks her. Ciji tells Val that she has caused Gary to drink again and they fight. After Ciji doesn't show up to perform at the restaurant, her dead body washes ashore.

Ciji's body is discovered and a murder case begins with many people as suspects. Later, Gary is charged with her murder.

Gary starts to sober up while in jail but Abby refuses to bail him out. Val admits to having a fight with Ciji before she was murdered.

While Gary is being held in jail for the murder of Ciji, it's Valene that confesses to killing her. Lilimae tells Chip that she's had enough of his lies and kicks him out of the house. Richard walks out on his family.

While Abby plots to have him institutionalized, Val makes one last ditch effort to get through to Gary; Laura interprets Richard's disappearance as an admission of guilt; and the Wards prepare to leave Knots Landing.