Against her doctor's orders to ease her work load, Alison goes to D&D to meet with a client. Meanwhile, Michael hires Megan as the new receptionist at Burns-Mancini practice despite Peter's wariness. Kimberly is hospitalized and is told of a new problem in her medical condition that could help her or kill her. With Samantha's help, Matt tries to find his runaway niece while he argues with his mother over who will take custody of Chelsea. Amanda invites Craig for a weekend drive up the coast where she tells him of a new turn in her life of vowing to be celibate for an indefinite period. Sydney meets Hilda Morris, the woman suing her, and her sleazy lawyer, Harry Dean, who make it clear that they will not back down from the lawsuit and plan to take all assets that Sydney owns. At the end, Samantha's controlling, violent ex-con father, Jim Reilly, suddenly shows up for a surprise visit.

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Air Date March 11, 1997. After finally escaping Josh's abuse, Megan's life suffers more when she is evicted from her own house after word spreads of her arrest (and past life). Meanwhile, Chelsea stays with Matt at his place where she proves too much for him to handle. An eccentric customer sues both Sydney and Samantha after injuring herself at the boutique shop when a display falls on her, courtesy of Sydney's carelessness. Word gets out about Taylor's affair and past history with Peter after Alison overhears an argument between her and Kyle. Kyle's brief affair with Sydney sets off a chain of events among the tenants.

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Air Date March 3, 1997. Josh continues Kimberly's plan to break up Megan and Michael when he plays all three of them against each other and sets Megan up to be arrested for solicitation to make it complete. Meanwhile, Matt's angry and rebellious 16-year-old niece, Chelsea, arrives in town for the funeral of her father (Matt's older brother), and causes concern for Matt and his mother. After a torrid night with Craig, Amanda realizes her mistake and rejects him, but he becomes oblivious to it and still wants in on a relationship. Taylor's world comes crashing down around her after Nick gives Kyle more proof of her and Peter's affair, in which he throws her out of his apartment and forces Nick to leave town after he beats Peter up.

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Air Date Feb 24, 1997. A nearly broke Craig moves into #8 apartment at Melrose to continue his pursuit and revenge against Amanda. Meanwhile, Josh introduces himself to Michael and threatens to expose Megan's past life at a hospital benefit, which all turns out to be Kimberly's plan to break up Michael and Megan. Peter and Taylor plot a dangerous scheme to steal Nick's incriminating photos of them together when Taylor drugs him long enough for Peter to sneak into his apartment to take the pictures. Undaunted, Nick and Craig switch to "Plan B" where Craig informs Amanda of Peter's liaison with Taylor, and she finally gives herself to him.

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Air Date Feb 17, 1997. Jake returns to Los Angeles where he seeks another chance to get Alison back. Meanwhile, Nick threatens both Taylor and Peter after snapping a few compromising photos of them together. Michael is forced by Kimberly to choose either her or Megan. Carter continues to enjoy his view of the real world. But when Carter learns that he's a part of a competition for Sydney, he realizes that the world is not for him and decides to go back to his reclusive business world. At the end, Megan gets an unpleasant surprise when she is visited by Josh Laughlin, her abusive former pimp, who takes her hostage.

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Air date Feb 10, 1997. After taking a punch from Billy, a frustrated Jake hits the road and ends up in a small town visiting his former girlfriend Colleen and her eight-year-old son. Back in Los Angeles, Alison has Billy as company when she hears her unborn baby's heartbeat. Meanwhile, Carter, wanting to get away from his solitude life, moves in with Sydney and begins looking for a new job and finds one... in Kyle's restaurant. Michael's personal care for Kimberly works wonders for her when they learn that her brain tumor is shrinking, but it has Megan wondering if she and Michael are finished. Peter finally starts a romance with Taylor, while a revenge-seeking Craig meets with Nick and hires him to spy on Peter, hoping to find out what he's up to in order to break Peter and Amanda up.

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Air Date Jan 27, 1997. When Samantha is threatened with eviction from Melrose, Billy suggests legal help, but regrets it when the lawyer, Kenny, turns out to be an old boyfriend of hers. Meanwhile, Taylor takes a dim view toward Kyle's short-tempered, former Marine service buddy, Nick, who shows up out the blue and asks to stay at their place. Amanda visits Peter's new home and makes a move to reconcile. Carter takes Sydney on a private getaway to a ranch near San Francisco to show her where he grew up, and she tries to break down his creative block. But later, Sydney learns the true reason why Walter has been insisting to her to spend time with Carter. Jake proposes marriage to Alison and they begin talk of moving to another place. When Michael is injured in a car crash while attempting to stop Kimberly from killing herself, he has a bizarre near-death experience in the hospital involving an angel Megan urging him to come with her to Heaven, while a demon Kimberly urges him to come with her to Hell, while the two women wait... hoping that he will recover.

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