Pierce is arrested after pulling a knife on Paige and getting into a fight with Alex. Meanwhile, Mary returns to town and reveals to Mack that she is Laura's mother.
As Gary heads to Florida in search of Val, Kate catches Alex and Vanessa in the shower together and ends up kicking them out.
Claudia is able to get Vanessa a job at a television station; Alex winds up with Paige; after the riots, Greg is appointed to a task force to rebult Los Angeles; and Gary returns from Florida, frustrated that he did not find out anything.
Gary learns that Val has been kidnapped, but as he chases the kidnappers in his car, the car Val is in explodes. Meanwhile, Anne begins to plan her wedding to Greg; and Mary is awarded visiting rights with Meg.
Kate helps Gary and the twins deal with Val's death, which ends up bringing the two closer together. Meanwhile, Greg appoints an ex-baseball player to his task force to rebuild Los Angeles; Anne admits to Mack that she is not pregnant, forcing Mack do debate telling Greg the truth about Anne.
Nick moves in with Claudia and she buys him an Italian restaurant in order to give him a solid reason to stay in town. Meanwhile, Kate feels guilty for falling for Greg; Mack and Karen's marriage becomes strained; and Mack asks Paige for one million dollars.
Bill is given an offer to play baseball in Japan and asks Paige to go with him, but is crushed when Paige admits she is not in love with him.
Vanessa wants Anne to give her $2,000 a week to keep her secret. Anne finds out that Greg had Bill sent to Japan. Anne looses the baby after faling off a horse. Karen finds out that Mack tried to set up Mary. When Karen pays Mary a visit she finds her dead at her apartment.
Kate helps Gary get a new hire a housekeeper and shares with him about the way she feels. Vanessa is not happy that Anne wont give her the money. Anne admits the truth to Greg. Karen doscovers a tape that Mary made of her with Mack and hides it before calling the police. Mack gets rid of the tape but Mary had sent another copy to Toni who gives it to the police. Mack ends up getting arrested for Mary's murder.
Karen and Gary are refused access to Mack whilst he is being booked for the murder of Mary. Kate and Gary share a close moment. Karen is upset when she finds out that Mack doesn't want to see her. Karen turns to Greg for help.
Greg attempts to force Claudia to return her half of the money or he will make her disappear. Nick ends up giving her the money she needs but wont tell her where he got it from. Kate starts working for Greg. Gary pulls away after Kate kisses him. Mack tries to find out who really killed Mary. Gary asks Kate to watch the twins after he gets a lead on Val.
Karen and Peggy are forced to cover for Mack when Tom shows up to question him. Joe denies killing Mary when questioned. Tom is asked by Paige to wait 24 hours after he discovers that Mack has skipped bail.
Gary informs Karen that Mary was really Laura's aunt, and that Laura's mother died in childbirth. The charges against Mack end up being dropped and Joe is also released. Nick tells Joe that killing Mary wasn't part of the plan. Joe is later discovered dead. Nick gives Claudia a briefcase of money and wants her to open a bank account in a fake name. Gary tells Kate that he isn't ready to be in a relationship again yet after she comes on to him again. Karen decides to go stay with Diana for a while after she feels distant from Mack.
After being ignored by Greg, Anne makes a play for Nick. Greg lets Anne know that his heart doesn't belong to her. Claudia is blackmailed by Greg into selling him her shares. Kate is involved in an accident.
Kate ends up being fine and Gary tells her she needs to find someone more her own age. Kate decides to leave town. Tom looks into Kate's accident and Paige tells him that there is probably a link to whoever gave Claudia money. Vanessa ends up telling Tom that Nick is involved with Treadwell.
Diana thinks that her mother should give Mack another chance. Greg buys an expensive racehorse. Anne and Nick decide to steal it and ask for a $4 million ransom so they can leave town together. Greg ends up refusing to pay the ransom as the insurance money is worth more. Vanessa sleeps with Tom.
Claudia and Kate stay at Greg's ranch where he has hired more security. Claudia ends up selling her shares to her brother. Gary ends up telling Kate that he wants her in his life and they share a kiss. Mick is beaten up by Treadwell's men. Greg is shot but it is revealed that he is wearing a bulletproof vest. Vanessa runs away after seeing Tom with Paige. Mack attempts to convince Karen not to give up on them. Vanessa learns that a plane that Paige and Greg are about to fly on is going to blow up and she warns Tom.
Tom is able to talk Greg and Paige through disarming the bomb. Treadwell is furious that the bomb failed to explode and that Val has escaped. Val disguises herself. Val and Gary are reunited and Karen is shocked to find out that she is still alive. Tom asks Paige to become his wife. Claudia makes a deal with her brother. Nick meets with Abby and tells her that Treadwell is out of control and needs to be stopped.
Vanessa shoots Treadwell as he is about to shoot Nick. Val is reunited with her children now that Treadwell is finally out of the way. Kate decides to leave town after Gary and Val reunite. Abby informs Greg that she was Treadwell's partner and that she is taking over the Sumner Group. Greg is able to stop Abby's plans. Nick and Anne decide to move to Monaco together. At the airport they find out that Claudia has also made plans to move to Monaco. Paige and Greg share a kiss. Abby tells everyone that she is buying her old house back.
Follwing the broadcast of the final episode the cast and crew of Knots Landing take part in this special episode to talk about their favorite moments from the show. Michele Lee, Kevin Dobson, Ted Shackelford, Joan Van Ark, Donna Mills, Julie Harris, William Devane, Nicollette Sheridan, Lisa Hartman-Black, Constance McCashin, Kathleen Noone, Stacy Galina and Michelle Phillips are the actors who took part. David Jacobs and Michael Filerman talk about how the show lasted longer than any other prime time soap opera. Joan Van Ark pays a final tribute to all of the supporting cast members who appeared on the series over the years.
Original cast members Michele Lee, Donna Mills, Joan Van Ark, William Devane, Kevin Dobson and Ted Shackelford reminisce; Alec Baldwin, Lisa Hartman-Black, Michelle Phillips, Nicollette Sheridan and Julie Harris also appear.