Amanda throws a party at Melrose to celebrate her purchase of the building and thus moves into Rhonda's vacant apartment after she leaves. At the same time, Amanda begins to turn her sights on Jake, much to Jo's anger and jealousy. Jane hands Michael divorce papers and at the urging of her friends, she decides to lay her hands on his future earnings, since she supported his college studies, while he shows Kimberly their new beach front house they plan to live in. Meanwhile, Alison receives more harassing phone calls from Keith and still doesn't suspect him, and when ...

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Alison refuses to believe Billy's suspicions that Keith is her stalker, until she finally wises up when she goes to Keith's room to wish him goodbye, he becomes violent with her. Meanwhile, Matt loses his job when the halfway house he works in closes down, so he asks Michael to get him a job at the hospital as a social services person, while Michael decides to conceal his living arrangements with Kimberly. Amanda and Jo watch Jake in a motorcycle race and begin compete with each other for his attentions. Also, Sydney Andrews arrives back in town to help comfort Jane ...

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A revenge-seeking Billy tracks Keith to Seattle and warns him to leave Alison alone. After Billy leaves, Keith kills himself while talking on the phone with Alison. While Michael tries to keep his living with Kimberly a secret, Sydney comes onto him and tries to win his affections by doing his laundry. Meanwhile, Amanda wants Jake to model for her and Jo in a new beer campaign for D&D.

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Jake's motorcycle shop burns down while he's out with Amanda and both the insurance agency and Jo are suspicious as to the cause of the fire. Meanwhile, Alison's drinking rapidly grows worse after Keith's suicide. She blows off Billy when he offers help and provokes conflicts at work with Amanda. Jane starts dating Michael's old friend Sam, but when Michael finds out from Sydney, he tries to beat Sam up. A female Russian émigré doctor named Katya Petrova, who works at the hospital, takes an interest in Matt.

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When Jake realizes that he accidentally caused the fire, he gets upset and trashes Jo's apartment, forcing her to ask him to move out. During the divorce depositions, the evil and devious Michael tries to make Jane responsible for their breakup by saying that SHE was the one who had an affair with his friend Sam, while he lies about having an affair with Kimberly. Unfortunately for Michael, Kimberly isn't a very good liar and when she takes the witness stand, she easily breaks and confesses about her romantic relationship with him. Meanwhile, Matt is invited by Katya ...

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After Jake moves back into his old apartment, Billy and Alison unsuccessfully try to get him and Jo back together. Conflicts arise with Jake, Jo, and Amanda during the photo shoot for the beer ad. On another dinner date, Katya offers Matt $1,000 to marry her in order to keep her and her 5-year-old daughter, Nikki, from being deported back to Russia. Michael finally signs the divorce papers, but he gets revenge by throwing a party and inviting all of his and Jane's friends. Kimberly becomes jealous and a drunk Sydney spends the night at their beach house. Meanwhile, ...

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Alison travels to a remote ranch in northern California to meet with Steve McMillan, a reclusive entrepreneur, to land a big account with him. Jane assures Robert of her love and throws Sydney out of her apartment after finding out that she was at Michael's party. Sydney gets revenge on Jane by moving into another apartment at Melrose. While Kimberly is out of town on business, Sydney spends a romantic weekend with Michael at his beach house. Meanwhile, Matt accepts Katya's proposal, but not her money. At their reception party, a drunk Amanda continues to put the ...

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Alison becomes attracted to Steve when he arrives in Los Angeles to oversee D&D handling his business account. Billy gets jealous of all the time she spends working on the account with Steve. Later, Steve asks Jo out on a date. Amanda and Jake become much closer when she helps him get hired as manager at her father's auto shop. Amanda's father gives Jake $15,000 in advance, which he uses to pay back Jo. They argue when Jo refuses the money. Meanwhile, Michael continues his secret affair with Sydney, but when he tries to break up with her, she threatens him. Also, Jane...

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Kimberly learns first-hand of Michael's affair with Sydney when she walks in on them in bed together, breaks up with Michael, and then tips Jane about it, which results in Jane shunning Sydney and Kimberly moving out of Michael's place. Meanwhile, the INS wants to pay Matt and Katya a visit, so she and Nikki have to move in with him right on the day when Matt has a date with Joel, an art gallery owner. When Joel finds out of the arrangement, he breaks up with Matt, but at least the INS buys Matt and Katya's story. Also, Jo and Steve continue dating while Alison is ...

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Billy, Alison, and Jo are invited by Steve to his ranch for the weekend. Jo tells Steve she wants to slow down their relationship because she still has feelings for Jake. Steve breaks up with her. Later, back in L.A., Alison and Steve admit their feelings for each other and kiss. Meanwhile, Jake suspects that Amanda's father, Palmer, is involved in wrongdoings at the garage when he keeps ignoring questions Jake asks him about strange money transactions and invoices that he has seen. Jake also tries to deepen his relationship with Amanda by asking her questions about ...

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Michael and Kimberly finally make up and she accepts his marriage proposal while driving home from dinner, but they get into a serious auto accident and both end up in the hospital in critical condition with Katya attending to both of them. In her diagnosis, Michael suffers a serious back injury and is paralyzed below the waist, while Kimberly falls into a coma after suffering a critical head wound. Doubtful if Kimberly will make it, Michael convinces a reluctant Matt to change his blood alcohol test results so he won't be charged with DUI. Meanwhile, Jane and Jo give...

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Jake learns that Palmer is making money by illegally selling reproduced cars as originals. He is put in a dilemma when he is confronted by FBI agents who tell him to co-operate with them in nailing Palmer. If Jake refuses, the FBI will nail him instead. Meanwhile, Billy pressures Alison to end her connection to Steve. She refuses and instead flies to San Francisco for a press conference. Steve follows her and they have Thanksgiving dinner together. Sydney turns down Lauren's offer to become a hooker, but agrees to attend her Thanksgiving feast. At the hospital, ...

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After finding out that Steve was in San Francisco with Alison, Billy breaks up with her and becomes roommates with Jake. Sydney accepts Lauren's job offer and begins working as a hooker. Sydney is horrified when a client wants to use sex toys and storms out. Lauren is furious and warns Sydney never to do it again. She suggests that Sydney use cocaine to loosen up. Katya leaves Matt with Nikki while she goes to Russia to visit her ailing mother. Meanwhile, Jake is still helping the FBI in their plans to arrest Palmer and begins to avoid Amanda. Michael, now confined to...

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Billy and his magazine colleague, Celia Morales, get assigned an article on video dating. Alison gets a jeep as a gift from Steve and goes to visit him on his ranch where she tells him that they can't see each other anymore and he leaves for Europe. Meanwhile, Palmer is finally arrested by FBI agents upon a confession he makes to a wired Jake about his business practices, while Amanda (still loyal to her father) retaliates by evicting Jake from the apartment building. Jane cares for the crippled Michael while Sydney takes an occasion to torment him when he's fallen ...

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On Christmas Eve, Alison tries to make up with Billy, who begins having feelings for her again. Jane leaves Michael in the care of a tough nurse to keep him away from her and Robert. Meanwhile, Sydney continues her sordid lifestyle, until she sees the light after visiting a church and tells Lauren that she has decided to quit being an prostitute. Matt throws a Christmas party for the residents when Katya phones from Russia saying that she has decided to stay there after all and Nikki has to join her.

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Jo goes to her 10-year high school reunion in San Francisco and meets Reed Carter, a former boyfriend, who tells her that he was imprisoned for drug trafficking. He tells her that he was only taking the fall for someone else, and she believes him. Meanwhile, while waiting tables at Shooter's, a man offers Sydney a large amount of money to sleep with him. Even though she had vowed to quit prostitution, Sydney accepts. The man turns out to be an undercover police officer and Sydney is arrested. Michael bails her out of jail and demands her help in breaking up Jane and ...

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Evil once again triumphs over good when Sydney hires a prostitute to seduce Robert during a vacation in San Diego and videotape it. Michael then mails the videotape to Jane. She is shocked and throws Robert out of her apartment. Reed suddenly shows up out of the blue at Melrose and invites Jo to a romantic dinner to rekindle their long ago affair. Meanwhile, Amanda and Jake reunite and go on a Hawaiian vacation together. While Amanda is gone, Alison takes over an account of hers and proves to their boss, D&D President Bruce Teller, she can do it better. When Amanda ...

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When Michael, who is now walking with a cane, rejects Sydney, she tells Jane that he blackmailed her into setting Robert up. Sydney also tells Jane about the prostitution charges she's facing. Jane promises to stand by her. Michael moves back to the beach house and becomes dependent on pills to help with his back pain. Matt goes on a date with Jeffrey Lindley, who later tells him that he's a Navy Lieutenant and has not come out of the closet yet. Meanwhile, Jo becomes jealous when Reed asks Amanda to help him buy a yacht for his fishing charter business. Billy's ...

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Michael tries to make up with Jane, but he gets a restraining order against his phone calls to her and he starts becoming addicted to his painkiller pills. Eventually, Sydney finds him unconscious on the floor of his house after taking an overdose of pills. Meanwhile, Reed finally buys his boat with financial help from Amanda, with Jake as a mechanic, while Jo suspects something wrong about Reed. After wining the editing contest, Billy gets a big promotion for a editing job in New York City and wants Alison to come with him, but she wants to stay in Los Angeles. Also,...

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Matt helps Jeffrey in coming out which results in Jeffrey getting a transfer to the East Coast and they must bid each other a proper farewell. Sydney learns the secret about Matt changing Michael's blood-alcohol test after an investigation when Michael inadvertently blurts it out while he is in delirium. Meanwhile, Jo again gets curious about Reed and discovers the drug contents under the trap door in his boat. When Reed sees this, he ties her up and sets sail. Billy and Alison practice their long distance relationship over the phone, but when she arrives in New York ...

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Sydney starts blackmailing Michael with the blood-alcohol-changing scam by moving in with him and announcing herself as his new girlfriend to his colleagues at the hospital. Billy and Alison break up over her not wanting to live in New York, but he buys a ring and returns to L.A. to propose to her. Meanwhile, Reed takes Jo, against her will, on a cruise for his drug smuggling operations, where she eventually breaks free and shoots him after a brutal fistfight.

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Jo is arrested for Reed's murder and tries to tell the skeptical police and prosecutor that she was not involved in Reed's drug dealing while Amanda hires a professional lawyer for Jo to have the charges dropped. Alison accepts Billy's marriage proposal, but a jealous Amanda tells Alison and Jake about her Christmas Eve night with Billy in which Jake beats Billy up, were as Alison takes the news much cooler. Meanwhile, Sydney continues to make Michael's life miserable and even spends a lot of his money to redecorate the beach house.

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After Amanda points out to Alison that her engagement ring is quite cheap, she and Billy go shopping for a real diamond ring. Jo realizes that she's pregnant with Reed's baby and considers whether or not to have an abortion, while Jake cancels out on a dinner date with Amanda to be with Jo. Meanwhile, Sydney plans hers and Michael's wedding by mailing invitations, gets into a fistfight with Jane over wearing her old wedding dress and scorns her mother who tries to talk her out of it. At the ceremony on the beach, Matt is the best man (and the only one in attendance) ...

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A suspicious Matt sets out to find Michael, who is on his honeymoon camping trip with Sydney, waiting for the perfect time to murder her. But Michael changes his mind of pushing Sydney off a cliff when he discovers that he really loves her. When Matt tells Jane the secret about changing Michael's blood alcohol test results the night of the car accident, she uses this to blackmail Sydney and Michael to stay together. Meanwhile, Jo keeps seeing Reed in her mind, so she visits his grave and makes up with his ghost when he appears to her. Jake finally makes up with Amanda...

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Jane learns that her grandmother has died and goes to her home town in Chicago for the funeral to receive $100,000 in inheritance to start her own clothing business. But when Michael finds out about the money, he and Sydney go after it. Jo meets a model named Gregory, but he leaves her when he finds out that she's pregnant. Meanwhile, Alison and Billy travel to her home town in Wisconsin to visit her parents and to plan her father's surprise 50th birthday party, where Billy discovers that she has not told her parents about their engagement.

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Amanda hires Ted Ramsey, a charming young man as the building maintenance person. But when Amanda discovers Ted snooping around her bedroom, she fires him. Meanwhile, Alison starts having nightmares of being abused as a child and starts seeing a psychologist without telling Billy. Amanda intervenes in Jane and Michael's fight over her inheritance money and makes a deal with them: Michael will be an investor in Jane's newly opened clothing business in order for her to keep her grandmother's money. Also, Sydney hears that Lauren Etheridge got arrested and arranges to ...

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Alison starts going out with her psychologist, Dr. Miller, and Billy believes that he's trying to come onto her. Meanwhile, the voyeur Ted, continues hiding out in the crawlspaces of the Melrose complex and spying on Amanda. When Amanda and Jo discover Ted, they tie him up and menace him with knives. While Sydney continues running her own call girl business, Michael finds the name of his supervisor, Dr. Levin, in Sydney's client book and uses this information to blackmail Levin to appoint himself as the new chief resident and gets Matt a promotion.

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Kimberly Shaw returns, practically from the dead, after spending months in a coma from the car accident and moves back into the beach house, prompting Michael to throw Sydney out. But it becomes apparent that Kimberly is not the same person as Michael knew for she hide a gruesome scar on her head from the car accident. Meanwhile, Alison's parents hire a wedding consultant, but Alison and Billy fire her when she doesn't respect the pair's wishes at all. During a D&D photo shoot, Amanda forces Jo to fire a model, named Sarah Owens. Bruce Teller investigates and ...

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At her mother's request, Amanda reluctantly hires Chas Russell, Hillary's young fiancé, as a junior executive, in which he starts wooing Amanda and slacks off, leaving all his work with Alison. After being shunned by everyone, Sydney moves back into her old apartment at Melrose and continues operating her call-girl business. But Sydney's problems only get worse when Lauren is released from jail and goes back on their business arrangement when she demands a profit margin of $15,000 from Sydney as payback for running her business. Meanwhile, Sarah Owens goes on another ...

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Sydney gets a job as a stripper to get the remaining $5,000 that Lauren wants, but then when Michael takes Billy, Jake and some other friends to the strip club for Billy's bachelor party, they meet Sydney in one of her on-stage appearances and feeling totally humiliated, she quits. Jake comforts Jo and Sarah while tracking down Hank, much to Amanda's increasing jealousy. Meanwhile, Kimberly (who is revealed to be a homicidal psychopath) lashes out at Jane when she thinks she is cheating Michael out her design company profits, and begins a secret plan of revenge ...

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In the two-hour cliff-hanging season final, Chas sues Amanda and D&D for sexual harassment and all seems bad for her in court especially when no one, not even her mother or Alison, believes Amanda's innocent pleads, until Hillary learns the truth about Chas and his intentions. Jake is torn between his feelings for Jo and Amanda. Meanwhile, Matt hits on Rob, Billy's best friend and best man of his wedding who's also gay, much to Billy's shock. When Alison finally realizes that her nightmares were about her father sexually molesting her, she flees from the wedding (and ...

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