Dr Adam Heywood (Leighton Cardno) was found after being brutally stabbed and his co-workers were able to save his life. Adam's ex girlfriend, Nurse Toni Thompson (Laura Hill) initially reconciled with Adam out of guilt, but eventually they broke up for good. Adam was still traumatised by the stabbing and began to turn to drugs for support.
Waverley Harrison (Claire Chitham) initially hid her diagnosis from her husband Nick (Karl Burnett), not wanting him to go through what he went through with Ange and Jenny when they had been diagnosed with cancer. Nurse Anne Kahu (Emmeline Hawthorne) eventually convinced Waverley to tell Nick the truth and Nick supported her when she learned that her tumour was malignant. However, Waverley underwent an operation to remove the cancer and was soon told that she was in remission. A thrilled Nick and Waverley decided to put their energies into something worthwhile and Dr. Marvin Ho (Daniel Sing) suggested that they try taking in homestay students. The Harrison's took Marvin up on his advice and soon Chinese medical student Li Mei Chen (Li Ming Hu) arrived. Li Mei turned out to be very rude and unfriendly. Marshall Heywood (Paul Reid) attempt to attract the newcomer, but she wasn't interested.
Rachel McKenna (Angela Bloomfield) survived the car crash and was hailed as a hero when she rescued the occupants of the other vehicle. However Rachel was disgusted with herself and vowed to give up alcohol for good. Rachel and her partner, Dr. Chris Warner (Michael Galvin) reconciled, but Rachel quickly realised that Chris had fallen in love with Donna Heka (Stephanie Tauevihi). Rachel decided to leave town and bid all of her friends goodbye. After Rachel had gone, Chris and Donna announced their new relationship, but were met with a frosty reaction from their friends, particularly Toni, Nick and Waverley.
Tama Hudson was stunned to learn that he was going to become a father and had difficulty coming to terms with it, relaying his fears to his uncle Dr. Victor Kahu (Calvin Tutaeo) during his sixteenth birthday. Meanwhile, Shannon Te Nagru (Amber Cureen) decided to try going back to school, but faced taunts from her peers. Delphi Greenlaw (Anna Hutchinson) defended Shannon and the two became friends.
Tama's mother, Nurse Te Hana Hudson (Vanessa Rare) resented her lover Dr. Geoff Greenlaw (Andrew Laing) for her demotion at work and eventually the two decided to break up. Te Hana kept herself busy by preparing for the arrival of her first mokopuna (Grandchild). Geoff on the other hand was threatened with a series of ominous notes from somebody that knew about his euthanasia secret. After a confrontation with the woman, who had known him back in England, Geoff was forced to confess to Victor about his secret. Victor responded by covering the whole thing up.
Li Mei developed a crush on Nurse Matt McAllister (Roy Snow) and the two slept together. However Matt wasn't interested in Li Mei and dumped her. Matt decided to move away, thinking that there was nothing left for him in Ferndale. However Toni finally realised that she had feelings for Matt and raced to catch up with him. The two stunned everyone by arriving at the clinic saying that they had gotten married in Rotorua.
Toni's brother Dominic Thompson (Shane Cortese) arrived in town and began working as a physical therapist for Adam, who still had ongoing injuries from his stabbing at the hands of Kurt Matakoare. Dominic was stunned to learn that his sister had had a baby with Chris Warner, and it seemed that Dominic had some kind of grudge against Chris. However Dominic quickly befriended Geoff and his sister Delphi as well, who quickly developed a crush on the mysterious older man. Adam meanwhile, did not respond well to Dominic's attempts to befriend him and continued to turn to drugs for support. Li Mei eventually discovered his addiction, and finally showing a softer facet of her personality, she took it upon herself to help him beat his addiction.
The mystery of Dominic's seeming antipathy towards Chris was finally revealed when Chris' mother Lady Margot Warner (now being played by Dinah Priestley) returned to town and announced that she was dying. Margot was initially awkward towards Toni when she learned that Toni was her grandson's mother, but cheered up somewhat when she met Dominic. Margot and Dominic spent a lot of time together, much to the alarm of Chris and Donna who feared that Dominic was out to con her. When Margot died, she left money to Dominic in her will and in a shocking twist, it was revealed that Dominic was Sir Bruce Warner's son. It turned out that Toni and Dominic's mother Ngaire Thompson (Ilona Rodgers) had an affair with Bruce Warner back in the mid 1970s and that Ngaire had Bruce's child. Margot initially feared that Toni was that child (meaning that Chris and Toni's affair had been incestous) but Dominic had allayed her worries by revealing that he was in fact the product of Bruce and Ngaire's affair. Margot had always felt that Dominic had been deprived (particularly since Bruce had accepted his other illegitimate son Guy) and so left him the money in her will as a form of compensation. Chris was initially aghast that he had yet another half-brother, but Dominic quickly managed to win him around.
Delphi turned 16 and started to mature very quickly. Leaving her tomboyish ways behind her, she gradually adopted more feminine ways. Delphi quickly confided to Shannon that the impetus for this change was Dominic. Dominic and Delphi had become good friends in the time that he had been in Ferndale and Delphi had become attracted to him, and it was clear that Dominic felt the same way. However Dominic had genuine feelings of friendship towards Geoff and didn't want to risk that friendship by embarking on an affair with Geoff's teenaged sister.
Victor suggested that he and Anne adopt Tama and Shannon's baby in an open adoption arrangement where Tama and Shannon would still have contact with the child. Anne's mother Nurse Judy Brownlee (Donogh Rees) warned Anne that the adoption was a bad idea, but Anne eventually decided that she wanted the child. As the baby's due date grew closer, it became more and more apparent that Judy's predictions had been correct as Anne and Shannon had different opinions on how the child should be raised. Eventually Tama and Shannon decided to make a go of things and got back together much to the shock of the rest of the family. Shannon gave birth, but the baby boy, which they had named Te Ngakau, only lived for two weeks before he caught an infection and died. Everyone was devastated by the loss. Anne, who considered Te Ngakau as much her son as Shannon's, was made to feel like an outsider by the rest of the family and turned to her stepson Nelson Copeland (Quinton Hita) for support. The two began an affair!
Delphi was also devastated by Te Ngakau's death and turned to Dominic for support. However Dominic still refused to take their relationship any further. Delphi became involved with Bailey and lost her virginity to him. However, Bailey was involved in dealing drugs and his suppliers almost gang raped Delphi at the Dogs Day Inn. Fortunately for Delphi, Marshall and Dominic rescued her just in time. Delphi broke up with Bailey and tried to pursue Dominic once again. However by this time Dominic had committed himself to Emily Bredican, who had manipulated him into an engagement. Ngaire Thompson (Ilona Rodgers) arrived in Ferndale at this time and she and Emily immediate dislike to one another, though decided that Emily was a much more suitable choice for Dominic than Delphi was.
Delphi's brother Geoff meanwhile was stunned when he learned that the new nurse at the clinic, Robert, was gay. It soon became apparent that Geoff's homophobia was only a mask. Geoff found himself deeply attracted to Robert and slowly began to realise that he was in fact gay himself, which is why his relationship with Te Hana had never worked out. Robert and Geoff embarked on a relationship, a move which surprised Geoff's friends and family, especially Anne and a visiting Te Hana. Unfortunately Robert eventually cheated on Geoff and the two broke up.
Tama and Shannon drifted apart after their son's death and Tama began to neglect Shannon, focusing his energies on organsising concerts for the Dogs Day Inn. Shannon turned to drink and Marshall for support and the two shared a kiss, but stopped before things could go any further. Shannon later attempted suicide, but Victor saved her just in time. The incident made Tama realise that he still loved Shannon and the two agreed to try harder to make their relationship work.
Meanwhile, Matt couldn't help but feel that Toni didn't marry him out of love, but as way of having stability in her life. After an argument with Toni, Matt once again slept with li Mei, a fling which Toni quickly discovered. Matt decided that the marriage was over and left for Australia. Toni was devastated.
Soon afterwards, Adam who was now clean after battling his drug addiction, got a surprise when his old medical school friend, Dr. Martin 'Sticky' Stickwell (Ian Hughes) arrived and began work at the clinic. Sticky and Toni became good friends but Toni eventually decided that she wasn't interested in him romantically and Sticky ended up in a relationship with Adam's mother Barb Heywood (Annie Whittle) instead, much to Adam and Marshall's horror! Toni eventually reunited with Adam. However, Toni and Adam's renewed relationship didn't work out either and Adam left to go to the United States.
Te Hana decided to move up north to help run a clinic and to be with her daughter Mihi. Meanwhile Victor discovered Anne and Nelson's affair and angrily threw Anne and Nelson out of his life. At the same time, Judy had begun a relationship with Max, but was devastated to learn that he was dying. Despite this, Max and Judy got engaged and were married mere minutes before Max died. Anne got her hopes up for a reconciliation when Victor turned up at the funeral, but alas it was not meant to be.
An accident led to the shock revealation that Dominic was not the son of Sir Bruce Warner after all! Ngaire had lied! The deception was discovered during surgery on Dominic as his blood group was different. Dominic was devastated and told Emily, but she still wanted to marry him. Ngaire finding out that Emily only intended to marry Dominic for the Warner money, tried to get her to call off the engagement but Emily played her trump card and revealed that she knew the truth. Emily force Ngaire to stay quiet. On the day of the wedding, Delphi attempted to stop it but Ngaire, fearing that Emily would tell the truth if Dominic didn't marry her, locked Delphi in a closet and Dominic proceeded with the ceremony. Delphi was devastated.
Meanwhile Chris and Donna continued to have their ups and downs. When Terry abandoned Tasha, Rangi's daughter on their doorstep, Donna was adamant about taking her in. Chris and Tasha initially clashed with one another, but soon became closer. Chris also became close to Tasha's teacher and ended up sleeping with her one night.
Waverley discovered that she was pregnant but she and Nick were suffering financial problems at the time and because of this Waverley mistakenly believed that Nick didn't want another child and considered haing an abortion. In the end Nick found out about the pregnancy but Waverley's pregnancy was ectopic and she suffered a miscarriage. In the end, Waverley and Nick decided that they both wanted another child and agreed to try again.
Nelson resolved to put his affair with Anne behind him and after a tense encounter with Kurt Matakoare he went away for a few weeks to a Maori Language total immersion retreat and came back fluent in the language and customs of his people. Victor was impressed and reconciled with his son, but Victor still couldn't forgive Anne for cheating on him. At the same time, Nelson began pursuing Nurse Jesse George (Hannah Tolich).
Victor and Li Mei began a saucy affair, as Li Mei pretended to be friends with Anne and got her to confide all the details about her and Victor's marriage. Li Mei ended up having visa problems and blackmailed her lover into sorting them out for her. Anne was upset when she learned the truth about her supposed friend, but by this time Victor was considering a political career and didn't want a divorce ruining his chances. Anne agreed to continuing their pretence of a marriage, but began to turn to the much older Rex Traherne (Raymond Hawthorne) for friendship and comfort. Just as Rex and Anne were about to make love, Judy and Victor burst in with the news that Rex was Anne's biological father! It turned out that Rex had worked on Judy's father's farm many years ago and had seduced her before leaving without ever knowing that Judy was pregnant.
Toni developed a relationship with Adam's replacement, Dr. Logan King (Peter Muller), but was stunned to learn that he was married! Logan promised Toni that he would leave his wife for her, but Toni couldn't help but feel that she was breaking up a family.
Dominic was aghast to learn that Emily had only married him for his money. Slowly but surely he began growing more and more deceptive. By this time, Delphi had a new boyfriend, but Dominic arranged for him to be deported. Dominic then began drugging Emily so he could pursue Delphi without Emily getting in the way.
Geoff found a new boyfriend, but the relationship soon turned sour. Finally, Geoff's secret that he had assisted terminally ill patients to euthanise themselves came out and Geoff was fired from the clinic. In the midst of the scandal, Victor was forced to resign as CEO, leaving Chris to take up the position. The DHB decided to cover the whole thing up, but Geoff continued to make a nuisance of himself. At the same time, Geoff finally learned about Dominic's interest in Delphi and warned him away from his little sister. Geoff soon figured out that Dominic was drugging Emily and sought to expose him. Dominic was determined not to let that happen.
Nick, who had won half of the Dog's Day Inn from Geoff in a poker match, decided to move in there with Waverley, Li Mei and Lucas after Rachel sold the warehouse. They got a shock when Tama discovered Geoff's body in the freezer! An autopsy revealed that Geoff had been killed by a fatal blow to his head - he must have been murdered! This sparked off a whodunnit as Dominic, Victor and Geoff's ex boyfriend all had motives! Initially, Victor was the main suspect. As he had slept with Li Mei on the night of Geoff's murder and didn't want this to come out, he asked Rex to provide an alibi for him. Rex complied. In the clear, Victor then ended his affair with Li Mei once and for all. However he provided no comfort for Anne, who was deeply mourning her brother's death.
Marshall and Delphi developed an attraction for one another as Marshall comforted Delphi over Geoff's death but Dominic kept on getting in the way. Meanwhile, a drugged out Emily revealed to Chris that Dominic wasn't his brother, but after Dominic told Chris about Emily only marrying him for money, Chris decided that she was lying. Eventually Donna realised that perhaps Emily was telling the truth. Dominic was exposed as a fraud and Chris disowned him. Emily was sent to recover with her father.
After losing Chris as a brother, Dominic decided to get revenge. Taking advantage of Tasha, Dominic convinced her to lie and say that Chris was abusing her. Chris was arrested and when Donna confronted Dominic about what he had done, Dominic told Donna about Chris' affair with Tasha's teacher. Donna turned to Victor for support and the two kissed.
Delphi and Marshall fell out when Delphi learned that Marshall had taken video footage of Geoff's body. Watching the tape, Marshall discovered a footprint that belonged to a certain type of shoe. Marshall realised that Dominic had a pair of that type and became convinced that Dominic was Geoff's murderer! Meanwhile Delphi and Dominic decided to run away together. Marshall warned Delphi about Dominic before they could leave and Delphi found herself trapped with Dominic!
A new nurse Vinnie Kruse (Pua Magasiva) arrived at the clinic. Meanwhile, Anne attended an event to celebrate the opening of one of Rex's new buildings, while Tama catered for it. Suddenly the building began to collapse and Anne and Tama were trapped inside!