Unbeknowst to everyone, Caroline was also Alice's mother. Soon, Caroline's backstory came out: she once had an affair with C.C. Capwell and left him for a black boxer named Gus Jackson. Alice was the off-spring of this romance, which had ended because of the prejudice for interracial couples back then. In the current timeframe, Gus was in jail but Caroline managed to get him released by turning to C.C. for help. Gus and Alice were reunited, but Caroline still kept mum that Alice was her daughter. She did admit the truth to Lionel and Jane. Meanwhile, Lionel and Caroline fell in love.

As 1987 began, Lionel, Caroline and Alice were held hostage by a criminal. Following this horrible ordeal, Jane made peace with Caroline. Later on, Caroline finally told Alice the truth about being her mother. Alice freaked out and refused to talk things out with Caroline, blaming Caroline for leaving her in the mental hospital. Lionel grew distant from Caroline because of this, but they eventually reconciled. Caroline got on better terms with Alice as well. Soon after, Alice left town with Gus.

Following a trip with Lionel in Guatemala, Caroline began suffering from a deadly virus. In an unrelated decision, she and Lionel got engaged and tied the knot in an informal ceremony. Hoping to save his new wife, Lionel stole the anti-viral serum developed by Dr. Alex Nikolas. The serum seemed to cure Caroline of her illness, but that was short-lived. She became ill again and died in Lionel's arms. She was buried in her native Georgia.