Y&R Recap August 28: Cane and Lily Decide to Hand Trouble to Billy

On the Friday, August 28, 2026, episode of The Young and the Restless, Cane and Lily made a decision about Chancellor, Phyllis shouted at Victor, Sally had suspicions, and Jack and Diane enjoyed their trip.

Vacation Time

Jack and Diane enjoyed time in a crappy hotel | Image: CBS

Jack and Diane check into the hotel in Tahiti, where Jack is ready for a good time with his wife. Diane could barely believe that there wasn't any room service, nor was there a beachfront balcony or bell service. There was also one small twin bed. "We were supposed to have a rustic boutique beachfront paradise," Diane lamented. Jack said they had all they needed because they had each other and they were finally away from it all.

Jack and Diane's first day on vacation also consisted of skinny dipping and a romp in bed. Diane poured champagne and proposed a toast: "To the beauty and power of our love." However, that didn't mean things didn't get serious. The couple discussed the incidents of the last few months, including the night on the yacht. "But we are here to reconnect and put all that behind us," she said. Jack hated what had happened, telling Diane that he had broken her heart and her trust.

Jack hated that Diane had been traumatized. Diane countered: "I'd like to think that something good has come out of this nightmare." Jack said he was ready to listen to her talk about it Diane was facing some demons about herself, including the fact that she didn't always think she was good enough for her husband.

"Come on, Jack. I faked my death. I abandoned Kyle. And then I tried so hard to earn your forgiveness, but maybe deep down I knew it just wasn't forgivable. Maybe that's how you ended up with another woman," she cried. Jack was going to prove thata she had always been enough and will always be enough.

Phyllis' Accusations

Convinced that Victor is behind Matt's disappearance, Phyllis shows up to the ranch on as much of a tear as she was on when she showed up at Society and harrassed Adam and Cane. Victor thought she wanted to talk business, but Phyllis set him straight quickly.

Victor could only laugh. He had nothing to do with Matt. Didn't Phyllis remember that Matt said he was leaving? Did Phyllis think that she could force him to stay in town? Victor had jokes and asked Phyllis if she had checked the local prison. Maybe he was going under one of his various other names.

Phyllis refused to play and gave Victor a warning. She saw him threaten Matt and would use that information if she had to. She'd even call the cops. Victor remained amused and unfazed. Victor tried to get Phyllis to forget about Matt, but she had a one-track mind and wasn't about to give up.

About Billy

Sally was suspicious of Lily | Image: JPI

When Sally and Billy met up at Society, he told her all about his meeting Lily and how she would only give him Chancellor if he proved himself to her. Billy thought the whole thing was ridiculous and just wanted Lily to accept that the company was legally his rather than her game-playing.

Sally didn't even trust Lily and was sure that she was setting a trap for Billy. Even if Billy did everything that Lily wanted, Sally didn't think that Lily would hand over the company. Billy didn't see it that was. He felt that with Devon starting a college and Nate going back to medicine, that Lily would also want to move on and go in a different direction.

Sally argued that everything seemed very suspicious. "Maybe it's just some strategy to get you to let your guard down," she said. Sally wondered if Lily had spoken with someone who was once close to Chancellor, like maybe Amber Moore. (Did we just get an Amber Moore mention?) Sally just didn't want Billy to end up hurt again and could see Lily doing that.

Billy promised to stay on high alert, but "I am feeling pretty confident about it." Sally countered: "Which is why I hate throwing a wrench in it based on a gut feeling."

Lily and Cane Plan

Lily and Cane don't want Billy's trouble | Image: JPI

Cane and Lily argued over the deal that Lily offered Billy. He was Chancellor's CEO and couldn't believe that Lily would meet with Billy like that without consulting him first. Lily was honest and told him that she didn't think she'd win a lawsuit. Her lawyers had advised her that the Abbotts had a good case. Plus, Jack turned down her offer and she wasn't in the mood of a big fight.

Lily took Cane to task for not having her back, but then they discussed the matter more in depth. Cane understood that jack wanted to hnor what his father had allegedly wanted, but Lily had doubts. "Ever since Billy dropped this bombshell, I keep having these questions...I just feel like there's something else going on. I need to find out what that something is." She couldn't imagine that Katherine had never paid this debt back, as it wasn't like her.

"I feel like there's too many holes in the story to take it at face value. Like the answer has to be out there," Lily said. After her talk with Billy, Lily realized he wasn't hiding anything and really just wanted the company.

There was something very wrong here and they knew another secret was about to drop, so in the end, Lily and Cane thought that if a secret did come out, it was best to do with Billy in charge. (Be careful what you wish for, Billy?) "I know it seems ruthless, but maybe the best way to protect ourselves is to leave Billy holding the bag," Lily said.

Where do you think Matt is? Is Billy about to get himself in trouble again? Sound off in the comments.