Gregory arrests Cole. Caitlin comes back to Sunset Beach and tells Olivia that Gregory caught Cole. Gregory tells Caitlin to say goodbye to Cole, as he is about to be deported to Europe. Cole tells them that he slept with both Caitlin and Olivia, after which Gregory calls Olivia a tramp and Caitlin's heart is broken. However, Olivia wakes up and realizes it has all been a dream. Annie and Tim continue working on their plan, while Meg is reading Maria's diary. Someone unlocks the studio doors and Meg escapes. Meg blames Annie for locking her up, but Bette gives Annie an alibi for the whole night. Meg wonders if maybe Ben locked her, because he was the only one in the house the whole night.
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