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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.

After rescuing Lexi, Peter returns to the scene of an accident and discovers a vagrant that Lexi unknowingly hit while driving Peter's car. Peter then takes the vagrant, Bob, to the hospital and decides to protect Lexi. Meanwhile, Cooper proves to Craig that Michael stole his idea for the surgical glove by showing him old sketches of the glove. Jennifer (still loyal to Michael) bugs her apartment with a surveillance camera to find out what Cooper knows while he is courting Megan, and to know the location of the sketches so Jennifer can steal them. Also, Connie gets a full-time job at A.W.A. as Billy's assistant after Samantha returns home from a business trip. Amanda reluctantly hands over her share of the Jazz Club to Kyle, while Taylor unsuccessfully continues to try to win him back. At the end, when Jennifer sneaks into Cooper's office to steal the glove sketches, she witnesses Peter and Lexi talking about the hit-and-run cover up.

After Nick and Taylor accidentally kill Christine when she refuses to go along with their plans, they place her body on railroad tracks and let a train run over her to make it look like a suicide. When Kyle and Amanda hear the news, their concerns and guilt over Christine disrupt plans for their honeymoon. Meanwhile, Taylor's skittishness over Christine's death worries Nick who decides to shut her up, permanently. But Michael happens by when Nick is about to murder Taylor at the restaurant and she asks his help to fake her own death to make Nick go away. When Samantha goes on a secret weekend getaway with Jeff to San Diego, a lonely Billy seeks comfort with Jennifer at an advertising awards dinner. Also, Cooper tells Peter about the codicil in Sterling's will, where Peter uses this to make an effort to reconcile with Lexi.

After being tipped off by a drunken Kyle about Eve's past, Peter travels to her home town in Oakdale to conduct his own investigation and meets the parents of Eve's deceased football player boyfriend who still bitterly hate her for the death of their son. Meanwhile, Ryan confronts Kyle about his drug and alcoholism, while Amanda decides to reach out to Kyle despite his problems. Also, Megan continues her secret work for Lexi while Ryan grows more suspicious about her work. Then after a confrontation, she clears the air over her man-searching for Lexi. With Peter out of town, Michael takes over as temporary chief of staff at Whilshire, while a new nurse named Audrey presents problems when after Michael passes her over for a promotion, she brings sexual harassment charges against him.

Sydney makes a suspicious deal with two new business partners for Mancini Designs for a new pantie hose. With Brooke's help, Amanda launches a successful coup against Alison by making her look incompetent to D&D's board of directors which results in Alison's dismissal and Amanda immediately taking over her position. Meanwhile, Michael threatens Amanda when he receives a restraining order from her. Kimberly get complimented out of the camp when she breaks her drill instructor's arm and returns as an unstable-as-ever person, vowing to get back at Michael for abandoning her. Matt meets the hospital's new plastic surgeon, Paul Graham, who is also gay and invites Matt out on a date. Also, Jo feels guilty about seeing Jess behind Jake's back.

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 with her divorce.

After Peter tells Lexi about still having feelings for Amanda, she throws him out of his apartment. But later, Lexi learns she may take the fall for her late father's larceny charges, until Peter suggests a way out by marring Cooper to obtain the $10 million from Mr. Sterling's will, which neither Lexi or Cooper are willing to do. In the Caribbean, Rory takes Amanda on a honeymoon hideaway to a remote island where he slowly tries to poison her, while Kyle tries to find them before it's too late. Meanwhile, Samantha and Billy file for divorce from each other. After being rescued from an attempted suicide, Taylor asks a reluctant Michael to let her stay with him at his beach house until she sorts things out with her pregnancy.

Taylor begins to try to chip away at Michael's contempt for parenthood while continuing to stay at his place. Also, Michael begins dating his new receptionist Carrie, in which the date takes a turn when he's forced to help out a car accident victim and his pregnant wife who goes into labor. Meanwhile, Amanda and Kyle return to Los Angeles where Peter tells her that he wants to start over with her. Amanda turns Peter down gently, but it's clear that he will not take 'no' for an answer. Faced with going to prison for her father's embezzlement scams, Lexi pleads her case to Megan to pressure to marry Cooper to get the insurance money to save her company. Also, Samantha continues to simmer at the sight of Billy and Jennifer together while she makes her own plans with Jeff.

Alison gets her operation and she goes home to recover while Billy takes care of her and becomes overprotective. While Jake tries to get intimate with Jo, she says that she needs time to think about it, while he helps her overcome her depressing past against Christmas. Rhonda decides to go on a skiing trip to Aspen with Terrance. Meanwhile, Matt prepares a holiday meal for the tenants, while trying to make up with his estranged father whom has always disapproved of Matt being gay and open about it. While Jane is out of town, Michael is divulged with hospital patients in the ER and invites his co-worker, Kimberly Shaw, over at Melrose for the Christmas party.

Jane's baby is checked via ultrasound and it turns out to be stillborn and she has to get an abortion, which is a emotional setback for her and Michael. Sandy tries to cheer up Jane with a little stray dog she found at the beach who runs away, while Michael confides his frustrations with his co-worker, medical intern Kimberly Shaw. Meanwhile, Billy and Alison go head-to-head over the right to privacy in the apartment.

After Peter publicly declares his love for Lexi, she moves in with him at his house. Meanwhile, Jennifer helps out Craig sell the 'Mancini Glove', hoping she will get a share of the profits. After Amanda again rejects Eric's advances, he shows his true obsessive colors when he strikes back with a vengeance by forcing the Jazz Club, as well as Kyle's restaurant, out of business, seizes all of Amanda's assets and even threatens her agency, until he offers a way out. Meanwhile, Michael is plagued by strange going-ons by an unseen stalker who's pretending to be Kimberly, and Michael has Cooper arrested who thinks he is behind the recent mishaps after learning about his connection with Kimberly from Peter and Lexi. Also, Samantha and Billy begin to squabble over finances for their coming wedding.

Lexi moves in with Cooper at his apartment at Melrose and continues to blame Peter for her father's death, despite evidence that Mr. Sterling was not taking medication for his high-blood pressure. Meanwhile, Peter visits Michael's new clinic in South-Central L.A. and is chased away by Spider and his gang. An increasingly jealous Billy finds himself drawn to Jennifer while she lends a hand with a ballroom dancing ad campaign, and a confused Samantha finally reveals her feelings for Jeff. While Amanda goes on a business trip to New York, Kyle tries to help with Christine's recovery. But Kyle's old Marine friend, Nick, secretly arrives back in Los Angeles and schemes with Taylor to keep Christine in town as part of a plan to break up Kyle and Amanda. Megan keeps Michael company who thinks there's still a chance to reconcile with her. At the end, during the reading of Thomas Sterling's will, Cooper is entitled to a secret windfall of $10 million if he remarries Lexi within a year.

Cooper secretly intervenes when Michael's wooing of Megan with expensive gifts makes her hesitant about a divorce. Jennifer also gets Cooper to drop his lawsuit against Michael while she blackmails Lexi about the hit-and-run cover up for some of Cooper's alimony. But this forces Lexi over the deep end when she nearly overdoses on pills. Singer Jon Secada arrives in town and agrees to help his old friends Kyle and Taylor save the Jazz Club with a Christmas Eve concert. Meanwhile, Connie stirs up more trouble between Samantha and Billy when Samantha refuses to believe Billy's true claim that Connie made a pass at him, which is all revealed to be part of Connie's plan to break them up and make Samantha as lonely as she. Also, Amanda seeks to reconcile with Kyle whose continuing jealousy and suspicion push her away.

Kyle unsuccessfully tries to get Peter and Amanda back together during his birthday party at his restaurant. Peter continues to sulk about his sagging medical career which drives a further riff between him and Amdanda. But later, Peter gets an emotional boost when he saves the life of an elderly woman from choking at a traffic accident. Meanwhile, Sydney visits Carter Galivan at his house again during a formal fund raiser where he gives her a new sports car that was given to him as a gift. Tensions arise between Jane and Sherri, in which Jane learns from Sherri's neighbor, Ed, about Sherri's alcoholism and depression. Billy tries to help Samantha to visit her home town and an impassioned affair finally begins between them. Dan and Matt make amends meet, but only temporarily due to Dan's possessiveness and unpredictable behavior. Also, Michael hesitates to sign the papers finalizing his divorce from Kimberly.

Michael finds Kimberly unconscious after she tries to kill herself by swallowing a whole bottle of sleeping pills and waits for her to die. But they are discovered when Sydney walks in on them. Sydney then blackmails both Michael and Kimberly for $50,000 each to help each other in fighting against the other in matters of the incident. Meanwhile, Jake competes with Jess for Jo's interests. The devious Brooke starts Amanda's plan to help her take over D&D when she manipulates Alison to give Amanda a job at the agency, and then begins to disrupt Alison's work schedule, while she also sets her sights on Billy, despite knowing about Alison's feelings for him.

Amanda becomes Kyle's new silent partner to help him finance his dream of owning his own jazz club above his restaurant. Meanwhile, Jennifer becomes acquainted with some of the residents from Melrose which include Kyle and a very hostile Taylor when it's revealed that Jennifer was the young waitress from Boston that Kyle had an affair with years ago which almost broke up his marriage. Craig continues to romance Sydney who accepts his offer of pampering at a posh health spa in Palm Springs. Amanda blames Alison's mistake at work on her return to drinking and she and Billy try to convince an oblivious Jake about her problem. Jim keeps asking Samantha for more money, and Chelsea and Denise plot against Matt so that he will lose the coming courtroom fight for custody of Chelsea. Also, Taylor worries about Peter whose obsession with her as her sister is becoming more twisted.

When Billy find's Brooke's birth control unused, she declares her omission had the usual consequence. Alison moves into Hayley's mansion where she discovers a locked room belonging to his late wife that she cannot enter. Meanwhile, Matt asks help from Michael for his entrance test to medical school. Richard asks Jo to come with him to Hawaii to do a photo shoot, while he sends Jane to New York. Jake becomes furious when he learns about Jo wanting to go to Hawaii and he seeks comfort with Shelly. When Amanda expresses her feelings to Peter, hoping that the comatose Jack shall never recover, Sydney's there to record it on tape. Also, Kimberly gets invited as a guest on Dr. Joyce Brothers' radio show whose special topic deals with psychotics. But Kimberly must find a way to get the monitoring bracelet off her wrist first.

Billy and Kyle put pressure a rescue team to mount a search-and-rescue operation to find Amanda and Samantha. After being rescued, Amanda turns out have a broken back and may be paralyzed from the waste down for life. Connie also comes to peace terms with Billy and Samantha. Meanwhile, Peter finally sends Bob on his way, but he doesn't stay away for long since he has apparently fallen for Lexi. Kyle forces Taylor to agree to keep their Las Vegas fling to themselves, but the obsessive Taylor apparently isn't inclined to let Kyle go. After having Michael removed as Whilshire's chief of staff, Cooper suggests to Peter that Michael isn't good for their practice and insists that he be thrown out, while a frustrated Michael meets Amber, a stripper whom he saves from a mugger. Also, Cooper finally convinces Megan to spend the night with him, and an unsure-of-himself Craig tells Jennifer that she isn't good for him anymore.

Alison goes over the deep end when she realizes that Billy and Susan now live together and begins dating record producer and party king Zach Phillips. Jo's custody battle for her unborn baby begins where her lawyer, Mr. Waxman, believes he shouldn't discredit the Carters, but show that Jo's a fit mother. But all turns bad for Jo when she and her friends are raked over on the witness stand with incidents from their pasts. Meanwhile, Kimberly wants to get pregnant, but her gynecologist tells her that she can't bear children. Matt ponders if can make a commitment with Jeffrey. After Bruce suffers a mild heart attack, Peter persuades Amanda to begin the takeover of D&D.

Michael takes Amanda with him to a ranch in Santa Barbara for a few days of relaxation and to attempt to woo her. But when Kimberly accidentally finds out, she follows them there and threatens both of them with bodily harm. When Alison delivers Amanda's entry for an advertising contest, the entry coordinator, Brooke Armstrong, convinces Alison to enter the contest herself in which she befriends her and offers Brooke a job at D&D. Meanwhile, Sydney reverts back to her devious personality by declaring an all-out war when Jane refuses to back off from seeing Jake. Sydney then successfully sabotages Jake and Jane's romantic evening by going out and making Jake rescue her from rowdy patrons at a sleazy and dangerous biker bar.

Kimberly becomes nervous when the hospital's new chief-of-staff, Dr. Calvin Hobbs, issues a psychology evaluation for the employees because she knows about her psychotic tendencies. So, she resorts to hiring two thugs to beat up Matt in order to avoid taking the evaluation since Matt is coordinating the tests. Meanwhile, an unusually pail and emaciated Amanda starts giving everyone a hard time at work. Billy thinks she looks sick and asks Michael to inconspicuously examine her during a formal charity ball. Alison's sister, Meredith, arrives in town for a visit and falls for Billy. Sydney begins participating in Martin's activities, much to Jane's disapproval while at the same time, Sydney gets blamed for a series of incidents at Melrose, starting when Jo's apartment is broken into and all her camera equipment is stolen. Then, Jane's apartment is broken into and her dress designs are ruined. Then, Shooters is broken into and trashed and Jake blames Sydney, despite her watertight alibi. But the real culprit is Rikki who (acting under orders from Martin Abbott) is plotting to turn all of Sydney's friends against her to draw her closer to them.

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 co-worker, Celia, moves in with him and Alison while her apartment is being fumigated. At the same time, she and Billy are in an editing contest at work to get a promotion.

Michael tries to hide Taylor from Jane after she follows him back to Los Angeles and who catches up on who's been with whom from Amanda and Kyle, among others. Meanwhile, Samantha enlists Jeff's help in sabotaging Billy and Jennifer's relationship by having him travel to Atlanta where he sends Billy a fax message claiming to be from Alison Parker. Also, Cooper and Lexi are warned by the Sterling lawyer to abide by their vows or face fraud charges, while a jealous Megan stands idly by. Peter fears he's gone overboard in his arrangement for Amanda when he discovers that the two men he hired to kidnap Amanda and release her so she will look upon Peter as her savor, turn out to be cold-blooded hit men who have no qualms about anything to get the job done, and they plan to kill Amanda after they get their ransom money from Peter.

In the thrilling series finale, Terry and Sarah survive the car accident where Ryan finally makes amends meet between Megan and Terry, who agrees to leave town and Ryan to start over his life with Megan and Sarah. Meanwhile, Eve's sanity finally cracks when she kidnaps both Lexi and Michael as part of her plan to murder Amanda and Peter and set Lexi up for the fall, while Amanda's guilt over the Demarr football murder surfaces for everyone. Peter begins to have other problems when Irene Shulman starts a new plan to bring him down by charging him with mutual funds charges. After Jane tells Kyle that she's pregnant, he's eager to start his life over with her, but Jane suspects that Michael may be the father of her unborn child, but doesn't tell Kyle. Also, Michael tries to pressure Lexi to marry him, but she refuses for her career at Thomas-Sterling-Conway comes first. Fleeing from both a police investigation and the murderous Eve stalking them, Amanda and Peter take refuge at Louis Visconti's mountain cabin. When the police close in, Amanda and Peter fake their own deaths by blowing up the cabin. In the end, Peter and Amanda skip the country and secretly marry on a remote tropical island, while Eve is on her way to a lunatic asylum with no one to help her. Ryan and Megan live happily ever after as does Kyle and Jane. While a lonely Lexi continues running her advertising company, Michael, having covered for Peter and Amanda and receiving $1 million in bribe money, settles with his new job finally being the Chief of Staff at Wilshire Memorial with a large-breasted nurse as his secretary. "Life is good", says Michael.

After Cooper is released from jail, Megan follows him around and discovers that Kimberly's mother is the one responsible for trying to kill Michael, who eventually makes another attempt in the hospital O.R., but stabs Megan instead. Meanwhile, Kyle's outburst at Eric prompts him to extend his deadline at closing down the Jazz Club by giving an indecent proposal to Amanda. Connie, an old friend of Samantha's, arrives in town from New York to be the maid of honor at her wedding, and who brings a secret agenda. Also, Craig throws Billy a bachelor party and makes the moves on another woman. Lexi puts herself in Cooper's debt after she shows her hidden addiction to tranquillizers. At the end, after Kyle learns from Taylor about Eric's indecent proposal to Amanda, he breaks into Eric's hotel suite and threatens to throw him off the 10th floor balcony.