At ConFusion, JR told Colby that Amanda wants Ryan and Greenlee to adopt her baby. JR noted that everything would be fine so long as Adam didn't learn of the pregnancy. Adam overheard part of their conversation; they tried to cover. An arriving Amanda asked to speak to JR privately. Across the room, Adam roughed up Petey, mistakenly thinking from the comment he overheard that Pete had gotten Colby pregnant. Colby broke it up while Amanda told JR that Ryan and Greens had said no to the adoption. Adam deduced that Amanda must be pregnant. Amanda was uneasy when she noticed Adam staring at her. Colby told Pete that she misses him. Adam asked JR point-blank if Amanda was carrying his child. JR confirmed it but ordered Adam to back off. "That's Chandler blood!" reminded Adam, making it clear that he intended to stake a claim on the kid. He also noted that it was tacky of JR to have impregnated Babe's best friend. JR stormed off.

Tad freaked out when he discovered that Kathy is missing. Angie and Jesse tried to keep him calm, with little success.... Krystal left a panicked message for David. She went back to Tad's, where Angie informed her of Kathy's disappearance. Angie thought David was responsible. Angie and Krystal's exchange grew harsher as Krystal made a dig at how Angie allowed Rebecca to move in with her and Jesse.

Amanda found Kathy wandering on the docks and brought her back to the yacht. Kathy begged Amanda not to call Tad. She filled Amanda in on the bickering she'd heard between Tad and Krystal. Amanda reassured Kathy of her daddy's love. She threw her arms around Amanda. JR entered and Amanda told him that she'd changed her mind about the baby: She wanted to keep it. He was thrilled. David spied on them....

At the hospital, Kendall reeled from Bianca's revelation that Zach was the sperm donor for Gaby. Zach told Reese and Binks to leave so that he could speak to Kendall alone. Zach explained himself to Kendall and she claimed to be happy that he gave his sperm to Binks.... David pressed Erica to help him get custody of Little Adam.... Kendall was subtly dismayed to hear that Binks and Reese and the baby were staying in Pine Valley for a while. When David came to check on Kendall, Zach assured Reese, Bianca and Erica that Kendall had taken the Gaby news well.... David counseled Kendall about adjusting to having her brother's heart. He cut her off when Kendall asked how Babe was.... Binks went in to see her sis. She asked Kendall to be Gaby's godmother.... Tad attacked David, accusing him of having Kathy. David denied the charge.... Erica spoke to Kendall about Gaby. Kendall didn't buy that La Kane was okay with Zach having sired the baby and snapped, "Shut up, Mother, and tell me what you really think." La Kane acknowledged her suspicions about Reese. Kendall picked up on the fact that Erica thinks Reese has designs on Zach. Zach entered with the boys. She couldn't believe how big they'd gotten. She also asked to meet Gabrielle. Bianca brought in the baby and Kendall pronounced her to be beautiful. But before long, her expression darkened....

Back at the Martin house, Tad, Krystal, Jesse and Angie brainstormed about what could have happened to Kathy. At Jesse's prodding, Tad and Krystal realized that Kathy must have heard them arguing. They began trading blame and accusations until Jesse ordered them to calm down.