"Enter Alexis"
In the first episode of the second season, titled "Enter Alexis", the mysterious witness removes her sunglasses to reveal British actress Joan Collins as a new arrival to the series. Collins's Alexis Carrington blazed a trail across the show and its story lines; the additions of Collins and the "formidable writing team" of Eileen and Robert Mason Pollock are generally credited with Dynasty's subsequent rise in the Nielsen ratings. The Pollocks "soft-pedaled the business angle" of the show and "bombarded viewers with every soap opera staple in the book, presented at such a fast clip that a new tragedy seemed to befall the Carrington family every five minutes." Alexis's testimony notwithstanding, Krystle is immediately put off by the former Mrs. Carrington's condescending attitude and manipulations; Krystle's subsequent discovery that Alexis had caused her miscarriage by intentionally startling her horse with a gunshot settles Alexis as Krystle's implacable nemesis. Other new characters of the season are the psychiatrist Nick Toscanni (James Farentino), who tries to seduce Krystle while bedding Fallon and plotting against Blake; and Krystle's greedy niece Sammy Jo Dean (Heather Locklear), who marries Steven for his money. The season finale sees Blake left for dead on a mountain after a fight with Nick. By that time, Dynasty had entered the Top 20. Esther Shapiro lamented in the season one DVD commentary, "Had the series been left to us, and been a less huge hit, I think we would have seen these characters realized pretty much the way they are [in season one]. When Alexis came into it, it changed the tenor...And that's the way they are now on television: you have your traditional villain, and I think that plays to a different denominator."
In the third season (ranked fifth in the ratings), Alexis marries Cecil on his deathbed and acquires his company, ColbyCo. In the meantime, Adam Carrington (Gordon Thomson), the long-lost son of Alexis and Blake who had been kidnapped in infancy, reappears in Denver and almost starts an affair with Fallon before they discover they are siblings. Also introduced are Krystle's ex-husband, tennis pro Mark Jennings (Geoffrey Scott), and Kirby Anders (Kathleen Beller), the daughter of longtime Carrington majordomo Joseph (Lee Bergere). Kirby catches Adam's eye but weds Jeff after his divorce from Fallon. In the middle of the season, news that Steven has been killed in an accident in Indonesia comes to the Carringtons; he survives, but undergoes plastic surgery and returns to Denver (portrayed by Jack Coleman). In the third-season cliffhanger, Alexis lures Krystle to Steven's cabin and the two are locked inside while the cabin is set ablaze by an unseen arsonist, later revealed to be Joseph, who had meant for the fire to kill only Alexis and not Krystle.
With the show's popularity soaring in the fourth season (now the third-most-watched program of 1983–1984), former President Gerald Ford guest-starred as himself in 1983, along with his wife Betty and former Secretary of State Henry Kissinger. New characters included the charming and ambitious Farnsworth "Dex" Dexter (Michael Nader), the scheming public relations assistant Tracy Kendall (Deborah Adair), the unscrupulous playboy Peter De Vilbis (Helmut Berger), and Blake's illegitimate African American half-sister, Dominique Deveraux (Diahann Carroll). The main story lines included a custody battle between Steven and Blake over Steven and Sammy Jo's son Danny, and a false accusation of illegal weapons dealings orchestrated by Alexis to ruin Blake's financial empire. In the season finale, Fallon disappears just before her second wedding to Jeff (now divorced from Kirby) as her car seemingly collides with a truck on a stormy night (to accommodate the departure of Pamela Sue Martin from the series), while Alexis is arrested for the murder of Mark Jennings.
Driven by the new head writer and producer Camille Marchetta, who had devised the wildly successful "Who Shot J.R.?" scenario on Dallas five years earlier, Dynasty hit No. 1 in the fifth season. In the story, Alexis is exonerated and her secret daughter Amanda Bedford (Catherine Oxenberg) comes to Denver and discovers that Blake is her father. Steven has married Claudia but leaves her for a man and Claudia starts an affair with Adam. The marriage of Blake and Krystle is in crisis after the birth of their daughter Krystina, Dominique struggles to be accepted as a Carrington and loses her husband Brady Lloyd (Billy Dee Williams) in the process, and Sammy Jo discovers she is the heiress to a huge fortune. At the end of the season, an amnesiac Fallon (now portrayed by actress Emma Samms) reappears while the rest of the family go to Europe for the wedding of Amanda and Prince Michael of Moldavia (Michael Praed).
During the season, Dynasty attracted controversy when Rock Hudson's real-life HIV-positive status was revealed after a romantic storyline between his character Daniel Reece and Evans's Krystle. Hudson's scenes required him to kiss Evans and, as news that he had contracted AIDS broke, there was speculation Evans would be at risk. The event led to a Screen Actors Guild rule requiring the notification of performers in advance of any scenes that require open-mouth kissing.
Over the run of the series, the rivalry between Alexis and Krystle is a primary driver for the melodrama. Alexis resents Krystle's role as Blake's wife and mistress of the Carrington household, and tries to undermine her at every opportunity, while Krystle makes increasingly bold efforts to keep Alexis from interfering in the lives of their mutual loved ones. Social and media critics have noted the rivalry is also rooted in the long-standing trope regarding blonde and brunette women in competition with each other.
"Dynasty upped the ante. On one side was blond stay-at-home Krystle Carrington, the Mother Teresa of soaps, endlessly empathetic and supportive, always willing to listen and care, beloved by her servants. . . . In the other corner was the most delicious bitch ever seen on television, the dark haired, scheming, duplicitous, supremely self-centered and self-assured career vixen, Alexis Carrington Colby. Krystle just wanted to make her husband happy; Alexis wanted to control the world. How could you not love a catfight between these two?"
The pair have numerous verbal spats that sometimes lead to physical altercations. "Unfortunately, the thing people remember about this show is the catfights," noted Collins in 1991. Entertainment columnist Sue Cameron said in 2018 that the catfights became so popular that the press were invited to watch the filming of them. Krystle and Alexis famously brawl for the first time in Alexis's studio, and then later in a lily pond. They also hurl mud at each other at a beauty salon, and slide down a ravine together into a puddle of mud, before having their final showdown brawl in a fashion studio in the 1991 miniseries Dynasty: The Reunion. Later in the series, Alexis also has a catfight with Blake's half-sister Dominique (Diahann Carroll), and then her own cousin Sable (Stephanie Beacham). She even has a brawl with her on-again, off-again lover and one-time husband, Dex (Michael Nader). Krystle's niece Sammy Jo (Heather Locklear) also has her fair share of catfights, as she first engages in a slap fight with Claudia (Pamela Bellwood) before taking on Amanda (Catherine Oxenberg) in a brawl in a swimming pool. Sammy Jo later fights Fallon (Emma Samms) in a horse trough and the mud around it. Evans even battles with herself at the climax of a 1985–1986 storyline in which Krystle is imprisoned and replaced by a lookalike named Rita (also played by Evans); Krystle ends up battling Rita in order to escape. In 2008, Entertainment Weekly termed Alexis and Krystle's catfights "the gold standard of scratching and clawing."