Caroline Holden returns to Baywatch during a break for her soap opera roll in New York, which takes an unexpected turn when she is taken hostage by an armed robber which fills her with paranoia and fear for days after. Meanwhile, Neely, having quit her job at Baywatch, takes another job at a private beach club next door. After watching Neely's sloppy performance during a rescue of a crewman from a barge fire, Mitch finally learns from Donna about Neely's addiction to painkillers. But that doesn't prepare both of them after learning the shocking truth about Neely's "skiing accident" when she confides in them the real reason why she was away from Baywatch not for an accident, but of an unexpected pregnancy.
- Former Baywatch regular Yasmine Bleeth (Caroline) returns to guest star and makes her final appearance on the series in this episode.