S1, E163: Caroline and Thorne arrive at Bill Spencer's to tell him the news of their engagement as Ridge waits for Caroline in the Private Dining Room. Bill is overjoyed at the news and the couple decides to tell Thorne's parents. Eric advises Stephanie that they should stay clear from their children's romantic entanglements. Storm reminds Brooke about Dave and cautions her to be realistic about Ridge. Stephanie breaks the news of the engagement to Ridge who is devastated.