We say hello to Terry Davidson and her family for the first time. Terry works at the Kingsley hospital whilst husband Scott is a reporter. The rich and ruthless Carpenter family also live in Kingsley where Miriam is married to teacher Paul. Other residents of Kingsley include Gene and Carla Redlon.
Miriam becomes jealous of Lori. Jeff starts an affair. Lori is paralyzed after a car accident. Carrie comes to town and disaproves of her son's marriage.
Terry is shocked when her sister Nancy returns to town. Jeff is diagnosed with a serious illness. Carla grows more and more bored with her life with Gene. Nancy takes an interest in Charles. Miriam becomes dependent on drugs.
Ben and Lori marry. Charles proposes to Nancy. Jeff ends his affair. Russ defends Becky. Christmas is a happy time in Kingsley. Tragedy strikes on New Year's Eve that will change the lives of the residents of Kingsley forever.