Mel decided to take refuge at Steves flat whilst everyone was gossiping about what had gone on at the wedding. Mel didn't want to speak to Ian, and Ian started telling everyone that the reason they broke off the wedding was her infidelity.
Matthew, newly released from prison decided to get revenge on Steve and tortured him in the club, before leaving the square to start a new life. Steve then descended into an amphetamine addiction, and shunned the support of his sister and Mel. He leaves some in an asprin bottle in the club and when Beppe takes one and has a heart attack he knows that he must get away from the square.
Frank and Peggy announced that they were leaving to start a new life in Spain, but in the end decided that they couldn't leave the place behind and tried their hardest to remove Dan from the Vic. Bridges are built between them though when Dan tells them that the police know about the car ringin scam, they are grateful for the tip off. But soon they learn that he told the police in the first place and an angry Phil and Frank hold a poker game to make sure Dan loses all his money and has to leave Walford forever. But Mel starts getting threatening phonecalls and when Dan turns up and tries to harm her a newly returned and rehabillitated Steve steps in just in time. Steve later holds a gun to Dan's head to ensure that he never comes back to Walford.
While Frank is away though, a miserable Ricky left the Square.
Ethel moves back to the square and into Paulines. But Ethel has terminal cancer. She wants Dot to help her end her life, and Dot in the end abides and gives her a large dose of morphine. Ethel dies in her arms.
The Di Marcos leave Walford after Nicky, who had fallen for her Maths tutor was assaulted by him. They start a new life in Leicester, leaving Sandra, Beppe and Joe behind.
Irene Raymond also leaves the Square after she is unable to reconcile her marriage to Terry.
The Slater family enter Walford, and Mo Harris the grandmother of the family has some old scores to settle with Pat Butcher. Pat used to be a Harris herself.
Kat Slater develops a fancy for Steve, just as he starts to get close to Melanie. All three play games with each other, but Steve wants Mel, and so he proposes to her and she finally agrees, despite the fact that he had already booked the wedding and honeymoon before she had even accepted.
Mel did however let herself in for some big trouble when she slept with Phil. Phl would not leave Mel alone afterwards and even broke up with girlfriend Lisa to show that he was serious. Mel regretted sleeping with him and set a date for her wedding to Steve - March 1st.
Peggy finds out that Pat and frank had been having an affair and she decides to handle it by humiliating them in the Vic. Roy can't forgive Pat, and Frank leaves that night.