13 - 17 August
Bill pressures Thomas to build a stable family with Caroline and Douglas. Meanwhile, Caroline notes Sally's insecurity, and confirms that she wants Thomas back in her life. Steffy confronts Quinn about hurting Eric. Ridge informs Katie and Brooke that Steffy knows about him and Quinn being the reason for the estrangement from Eric.
Brooke and Ridge worry about Sheila's apparent influence on Eric in his vulnerable state of being hurt by his wife and son. Quinn appeals to Steffy to help her mend fences with Eric. To Eric's surprise, Steffy pleads with him to return home and give Quinn a second chance.
Caroline confesses to Bill and Steffy her regrets about moving to New York instead of uniting her family in Los Angeles. Bill expresses his intent to get rid of Sally once and for all, and to reunite Caroline and Douglas with Thomas. Both fashion houses prepare for the runway challenge in Monte Carlo.
Thomas is in shock when Bill tells him that Caroline is suffering from a terminal illness. Steffy notes that Caroline is still in love with her brother and hopes that they can find a way back together. Ridge and Quinn fear the worst about Eric possibly spending time too much with Sheila.6)
Bill attempts to persuade a highly reluctant Caroline into going along with a plan. At Spectra, Thomas is distracted, thinking about Caroline's fatal disease, as Sally enthuses about how great everything is going for them with the upcoming fashion challenge in Monte Carlo. Steffy discloses her earlier interaction with Sheila to Ridge.