Tad tracked down Krystal Carey in an attempt to learn more about J.R.'s new wife, Babe. Tad pretended to be interested in Krystal, but those feelings eventually turned into something more. Krystal traveled back to Pine Valley and stirred things up at Chandler Mansion with her less-than-refined way of doing things. When she learned that her "baby girl" Babe was pregnant, Krystal vowed that she was staying in town. Adam refused to allow her to stay in his home, but J.R. overruled his father.
Krystal and Babe were keeping a secret from everyone: Babe's previous marriage to Paul Cramer had never been annulled, thereby invalidating her marriage to J.R. Tad knew that the two women were withholding something big and set out to seduce the secret out of her. Tad eventually learned the truth, but promised Krystal that he wouldn't tell anyone so as not to upset J.R., Babe, or their unborn child.
Krystal thanked Tad for keeping the secret and promised to mail the papers to the court to get Babe's and Paul's marriage annulled. Krystal also learned that Babe had had sex with J.R.'s brother, Jamie Martin, and kept it a secret. When J.R. found out and he and Jamie demanded a paternity test, Babe confided to her mother that she had blackmailed Paul to fix the results of the test so that J.R. would be shown as the father. Krystal told Babe that she wouldn't tell anyone about the test, adding another secret to her slate.
Babe and Bianca were trapped in David's cabin during a tremendous rainstorm. As they both went into labor, Babe called Paul for help. She helped Bianca deliver a little girl and then gave birth to a boy herself. Paul arrived in his helicopter and airlifted them to safety. Bianca was unconscious and, after drugging Babe, Paul staged a chopper crash so that he could take Babe's son to be raised by his sister Kelly in nearby Llanview.
But the Chandlers threatened harm to Paul if anything had happened to babe's child, so he changed his story and said that Bianca's baby had been thrown from the helicopter. Bianca's baby was then given to Babe, leaving Bianca and her family to believe that her child had been killed. Babe named the child Elizabeth Miranda Chandler but called her Bess for short.
Babe eventually figured out that it had been her baby to have died and she told Krystal. When Krystal learned that Tad and his father, Dr. Joe Martin, were planning to perform a paternity test to see if Bess could possibly be Bianca's, Krystal made a switch, so that the results showed that Babe was the mother of Bess. Krystal convinced Babe to keep the truth of Bess's parentage a secret.
Krystal and Tad began to develop romantic feelings for each other. However, Krystal thought that, after what she had done to Bianca, she didn't deserve a man like Tad. She told him that she was not interested in pursuing a relationship and pushed him away, in an attempt to make him jealous by pretending to be interested in David Hayward. Tad began to wonder if Krystal had lied about Babe and Paul's marriage having been annulled.
As Krystal struck up a friendship with David Hayward, they realized that they had a lot in common. They'd even been at the same party many years before in a dorm room at Stanford University, where David was studying medicine. Krystal soon put two and two together and realized that David, not his college buddy whom she had always assumed, was Babe's biological father. When David learned the truth, he immediately embraced Babe, going so far as to help keep Bess's paternity a secret.
Liza Chandler became suspicious and snooped around, trying to find what Krystal was hiding. Liza found the annulment papers hidden behind a brick in the secret passageways of the Chandler mansion and, thinking that was the big secret, immediately showed them to J.R. Krystal, frantic about the missing papers, J.R. the truth, but she was too late-he'd already discovered the truth. Thinking that Babe had believed that her and Paul's marriage had been legally annulled, J.R. forgave her and still planned to wed her.
As the truth of Miranda's paternity began to surface, Babe fled town with Little Adam and Jamie. Everything finally hit the fan when J.R., having lost Bess to Bianca after the truth about the baby's maternity came out, tracked Babe down to get his son back. To save Babe, Krystal took the blame for the baby switch and went to jail, where she had a hard time of it until she befriended Di Kirby. Things continued to get worse for Krystal, but luckily for her, Babe used her knowledge of who Di really was to bargain with Adam. She pushed him to work his political connections to get Krystal released.
Once home, Krystal agreed to help Adam prove that Little Adam's new nanny, who claimed she was Dixie, was a fraud. She was Krystal's former cellmate Di Kirby (AKA Di Henry). To investigate Di's past, Krystal accompanied Adam on a trip to Crow's Hollow, West Virginia, where they got drunk and married. Krystal refused to annul the marriage and blackmailed Adam to help Babe win more visitation rights.
As Krystal watched her daughter fall more in love with J.R., she continued to warn him not to hurt Babe, and she encouraged Babe not to trust him. At the same time, Krystal was fighting her own growing feelings for Adam. Krystal and Adam finally admitted that he was crazy about her too. Krystal was still unable to truly trust J.R.
During the Mardi Gras Ball, Janet "From Another Planet" Dillon set off a massive explosion in the ballroom. She then kidnapped Babe and Little Adam. Once Janet was apprehended and Babe and Little Adam were rescued, Adam asked Krystal to renew their vows. She agreed. As a sign of good faith, he gave her half his shares in Chandler Industries.
Before Janet was committed, she stated that Dixie was still alive, but no one believed her. Soon thereafter, Krystal had a one night stand with Tad and got pregnant. Krystal claimed that Adam was the father.
Dixie finally revealed herself to friends and family. Di, it turned out, was Dixie's half-sister. Dixie figured out that Tad was the baby's father but agreed not to say anything.
Krystal eventually came clean to Tad and Adam that Tad was her baby's biological father. Tad and Adam were furious with Krystal. When Krystal went into labor after a heated argument with Adam, Adam left her alone and gave her a cell phone to call Tad for help. Colby saw that Krystal was about to deliver her baby and helped her. Colby delivered Krystal's new baby, Jenny Colby Martin. Krystal decided to make Colby Jenny's godmother.
Krystal opened up The Comeback restaurant and hired a new bartender named "Wes" to work there. Wes turned out to really be Richie Novak, Annie Lavery's brother, and he had just been released from prison. When Krystal found out, she fired him but Richie had a date with Babe. Babe came back safe and sound and started to doubt what everyone, including Krystal, was telling her about Richie. But Babe soon saw Richie for the dastardly man he was and broke off all ties with him.
Krystal's world came crashing down when Babe died when a series of tornados swept through Pine Valley in late-2008. To complicate matters even further, Krystal's ex, David Hayward, returned to Pine Valley and vowed to get revenge on the Martins and the Chandlers. Krystal told David to drop his vendetta but he did not.
David and Krystal mourned their daughter's death and, in a moment of grief, made love. Tad found out, divorced Krystal, and sued for full custody of Jenny. Not long after, David asked Krystal to organize the heart health benefit to kick off the opening of The Babe Carey Chandler Memorial Wing at the hospital. Krystal agreed and the benefit was a success. David and Krystal wed at Wildwind shortly after the event, after he promised to arrange for her to gain full custody of Jenny, if she helped him get full custody of Little Adam.
Krystal learned that Amanda Dillon was lying about J.R. being the father of her unborn baby. David was actually the biological father, but Amanda convinced Krystal that he would drop Krystal "like a hot potato" if he were to find out. Krystal chose to keep the secret.
Krystal's behavior became more and more erratic because David was drugging her to keep her compliant. She was conned into believing that raising Little Adam with David was the right thing to do. But Adam had a card up his sleeve. He knew a secret that would rock Krystal's world, should it come to light. He promised not to reveal the truth if she convinced David to back off and drop the custody suit.
Krystal eventually made her way to visit old friends out of town, parents of a young woman named Marissa Tasker. But Marissa's parents had died. Krystal discovered that Marissa was working at an illegal massage parlor to pay for her college tuition. After Krystal accidentally got Marissa her fired, they were both arrested, and Krystal offered to pay Marissa's tuition.
Marissa eventually came to Pine Valley and moved in with David and Krystal. Adam continued to hold Krystal's secret over her head. In order to take that power away from him, she admitted the truth. Marissa was Babe's fraternal twin sister. After having given birth to both girls, Krystal, too poor to raise two children, sold Marissa to the Tasker family. David and Marissa were outraged. Marissa developed a friendly relationship with her biological father, David, but had a difficult time forgiving her mother.
Krystal finally began to see in David what virtually everyone else in town saw. She realized that he had been drugging her, and she left him. Tad, having forgiven her for falling under David's spell, agreed to let Krystal move in to his house, to be close to their daughter. Krystal also slowly bonded with her other daughter Marissa, although she cautioned Marissa against entering into a relationship with Babe's former husband J.R. Marissa did not listen and went on to marry J.R.
Though they'd never gotten along since Krystal's involvement in the Miranda/Little Adam baby switch came to light, she accompanied Erica to Africa on a mission to bring attention to the poverty and starvation there. Erica was not pleased to discover that they would both share the same tent. When Erica's laptop battery died and she started to complain about everything, Krystal told her to stop acting like spoiled celebrity.
Krystal woke up as a scorpion climbed up her chest. Erica woke up and began to help until she reminded Krystal that just "a spoiled celebrity." Under duress, Krystal apologized. Erica attempted to get the scorpion to back off by sternly talking to it. When the scorpion did nothing, Krystal flung it off of her. She exclaimed to Erica, "That's how we do it in the trailer park." In 2010, Krystal was hired by Jackson Montgomery to be his paralegal and, soon after, she bought B.J.'s and turned it into Krystal's. Krystal joined Jackson in his search for Erica after her plane went down near Pigeon Hollow and she befriended the man that had rescued Erica. His name was Caleb Cortlandt. He was Palmer Cortlandt's nephew and he settled in to Pine Valley after he was named the head of Palmer's company, Cortlandt Electronics. Krystal introduced Caleb to Marissa and was thrilled when Marissa graduated from law school and was hired by Caleb.
Krystal continued to worry about Marissa after her marriage to J.R. broke apart due to J.R.'s infidelity. Krystal stood by Marissa when she decided to fight J.R. for custody of Babe and J.R.'s son AJ and when they received news that David was presumed dead after being poisoned by digitalis. Marissa had shut out her father but had always remained hopeful one day he would be a part of her life. Marissa grieved her father and Krystal consoled her after they learned David had faked his own death as an act of revenge. Krystal laid into David about the pain his selfishness had caused their daughter.
As Marissa's marriage ended, Krystal was shocked to learn that Tad was engaged to a doctor named Cara Castillo and that they planned to marry immediately. Tad explained that he was marrying Jake's ex-wife Cara to allow her to remain in the country legally. Cara had pushed Jake away years ago to protect him from a drug cartel that was after her and she faced danger if she left the country. Tad decided to help Cara in order to repay her for protecting Jake. Krystal was concerned for Jenny's safety living under the same roof as Cara in case the trouble Cara was in followed her to Pine Valley. Krystal contemplated moving out of Tad's house until Cara convinced her there was no danger on U.S. soil.
Krystal often lent her ear to Jackson as he voiced his concerns about Erica's postponement of their wedding. Jackson suspected Erica put off marrying him because she had developed feelings for Caleb. Krystal stopped by Jackson's yacht one evening to drop off some legal papers and accidently fell into the cold water. Jackson rescued her and after he pulled her aboard, he recommended she change out of her wet clothing. Erica arrived and misinterpreted the scene of Krystal in a towel and accused her of trying to make a move on Jackson. Afterward, Erica and Jack decided to marry in St. Barts.
Marissa asked her mother to accompany her to the wedding in St. Barts but Krystal declined the offer. The wedding never took place because the bride took off. Jackson received a call from Erica explaining that she could not marry him. In the days that followed, Krystal helped console Jackson and they almost shared a kiss. Krystal realized she and Jackson made a great team and wondered if there could be more between them.
Before Krystal could contemplate an interest in Jackson, Erica returned. She and Jackson reunited after Erica explained she had been kidnapped and had been forced to make the call that stated she did not want to marry him.
While Jackson and Erica reunited, Krystal was pleased to learn that Marissa was in a new relationship with Bianca. She supported Marissa's decision to move forward in a life with Bianca and she reassured her daughter Bianca was a wonderful woman. Marissa appreciated her mother's support and made plans to move in with Bianca.
In late summer of 2011, Krystal's restaurant was abuzz with the news and speculation about David's experimental Project Orpheus. His experimental treatments had brought several Pine Valley residents back from near death, including Maria Santos, Greenlee Smythe, and most recently, Dixie Cooney. David hinted he had more surprises waiting for the residents of Pine Valley in the form of others he had saved and touted that he would reveal them in his own time.
Krystal wondered if Babe was one of David's patients and she questioned him about it. He refused to give her a clear answer and Krystal recognized he was trying to torture her by causing her to wonder about her daughter. Krystal's good friend Angie Hubbard also tried to get an answer out of David to no avail. J.R. also wondered if Babe could be alive and shared his hope with Krystal. She admitted she had wondered the same thing but explained that in her heart she knew Babe was really gone.
Krystal was glad to hear that Tad and Dixie were engaged and she started to look for a place of her own. Tad reassured Krystal that Dixie's return did not mean she needed to leave, but Krystal explained that it was time. She shared with Liza that she was a bit lost in where her life was headed, but moving out of Tad's house seemed like a good place to start.
Krystal joined many other Pine Valley residents at a party hosted by Adam Chandler. His brother Stuart was revealed to be alive courtesy of David's Project Orpheus and Adam threw a party at his mansion to welcome his brother home. Krystal enjoyed celebrating with her friends and visited with Jackson until Erica arrived. Krystal and the rest of the party guests witnessed Jackson walking away from Erica she chased after him and begged him not to leave her. As Erica ran after Jackson through the party a shot rang out.