The daughter of a wealthy businessman and the ruler of a country, Lucy grew up with money and prestige. Growing up in Miami and Montega, South America, Lucy received the finest education and knew nothing but safety. Though hurt by her parents' divorce, she knew that her family loved her and accepted the situation. Over time, Lucy felt stifled by her mother and, after the death of her brother, she rebelled against her mother and dropped out of boarding school to live in Oakdale with her father. Several months later, Lucy met Aaron Snyder who was obviously attracted to her. Believing that he was dating another woman, she was repulsed by his attraction to her and considered him a jerk. Her attitude soon changed when she learned she was mistaken and the pair began seeing each other. Though scheming Alison Stewart tried to break them up, her plan failed and she begged the couple's forgiveness. The couple found another obstacle in Lucy's dad, Craig, who saw Aaron as a bad influence and forbade her to see him. When Craig learned that Lucy was seeing Aaron on the sly, he had a restraining order placed on Aaron. Worried about her father's threats of sending her away, Lucy contacted her mother, Sierra, who saw Aaron's good side and convinced Craig to let them date. Still thinking that Aaron wasn't right for Lucy, he agreed to let them see each other. When Lucy became involved in a minor accident riding Aaron's motorcycle, Craig decided that Aaron was totally wrong for his daughter and nearly talked Aaron's father into sending Aaron back to Seattle.

Their troubles far from over, Lucy was shocked when Aaron was accused of arson. Believing in his innocence, she went on the run with him and Alison in an attempt to evade the police. When Lucy finally demanded to know why Alison was helping Aaron, a remorseful Alison confessed that she had started the fire in an attempt to get Aaron to rescue her. Lucy was on her way to tell the police when she was hit by a trolley. In the end, Lucy wound up paralyzed and with amnesia and Aaron was set free when Alison's young stepbrother mistakenly confessed to the setting the blaze. Allison finally came forward and confessed. Now a free man, Aaron decided to stay by Lucy no matter how long it took her to recover. She soon recovered and with help from Lucy's new stepmother, Rosanna, Craig grudgingly accepted their relationship. Things quickly changed for the couple when Aaron got a job at "Metro", a nightclub owned by Craig and Dusty Donovan. Wanting to better himself for Lucy, Aaron was enthusiastic and went against Holden's warnings of working for Dusty. Holden's fears bore out one night when Aaron, who had the opportunity to leave work early and go to a dance with Lucy, opted to deliver a package for Dusty and was arrested for illegal booking! Dusty stuck up for Aaron and stated that Aaron had no idea that he was delivering money for illegal gambling, Aaron ended up losing Lucy, who was hurt that he didn't show up for her Homecoming Dance. Lucy felt Aaron's job was more important to him than her and called off their relationship. She then started dating a preppy named Clark.

Later in 2004, Lucy was almost raped by Clarke when he slipped her a date rape drug! Lucy was rescued by Rosanna's friend, Paul Ryan. Still reeling from that attack, Lucy learned about the illegal adoption by Craig of her baby brother, Cabot. In the fallout of the revelation, Cabot, who had been with the family for months, was returned to his biological mother. Rosanna, who by this point Lucy had grown very close to, left town. Horrified at what her father had done, Lucy left home and moved into her grandmother's. Although Craig begged her to return to Fairwinds, Lucy continually refused. Losing both Rosanna and Lucy caused Craig to resort to drastic measures and kidnap Cabot. The attempt failed and an angry Rosanna (who had returned to town by this point and divorced Craig) threw Craig out of Fairwinds. Having lost everything, including Lucy's respect, Craig sunk into despair, living in the back of "Metro" and drinking. Unable to watch her father self destruct, Lucy made plans to spend the summer in Montega with Sierra and her new husband, Alan Drake, despite Craig's pleas for her to stay. Then Lucy found herself a victim of an apparent kidnapping, but was rescued by Dusty. After a few near misses, on the day she was to leave Oakdale, she was suddenly grabbed by Dusty! Although she believed that he was her kidnapper, he convinced her that he had saved her. The limo driver who was sent to take her to the airport was the same man who tried to kidnap her at Metro! Lucy wanted to go back home but Dusty was convinced that she was in danger and the pair hid out for weeks so he could find out who was trying to get her and why. Although Lucy was initially antagonistic toward Dusty, they soon grew closer.

Meanwhile, through his investigation, Dusty was able to rule out mob involvement and found out the name of her would-be kidnapper, Don Creel, a hired gun. Not long after Dusty made this discovery, Agent Nikki Munson located the pair. Although Nikki wanted to arrest Dusty, he'd earned Lucy's trust and she convinced the agent to listen to his theory. Days later, Creel was dead and Lucy went home, although she still had no idea who was ultimately behind the kidnapping. Back in Oakdale, Lucy expressed her newfound feelings for Dusty (as she did with Paul Ryan earlier that year), but unlike Paul, Dusty seemed to share her feelings. Although he tried to discourage her since he was almost twice her age, it was obvious that Dusty had feelings for her also.

Dusty couldn't deny his feelings any longer and the two began a relationship. At the same time, Dusty was approached by an old friend named Dominic who wanted Dusty to find a boxer to compete against the young fighter he was managing. Suspecting that things weren't on the up-and-up, Dusty declined but allowed himself to be talked into it since he wanted to be able to provide for Lucy without relying on her trust fund. He wanted to keep this new venture from Lucy but she soon discovered the truth and asked to be involved. Lucy tried to help find a fighter but Dusty informed her that the trick was to find a fighter who was good, but not too good, so Dom's guy could have a good chance of winning. After looking for weeks, Dusty found the perfect person, Aaron Snyder. Despite some objections from Lucy, Aaron accepted the offer. Dom's fighter turned out to be Rafael "Rafi" Ortega, an old childhood friend of Lucy's from Montega. The fight ended in disaster. Mere days before, Dusty was told that Aaron was to take a dive in the third round. Dusty tried to persuade both Aaron and Rafi to comply with Dom's plan but both wanted this to be a fair fight. On the day of the fight, Rafi, learned that his gloves were weighted, but was forced to continue the fight when Dom threatened to hurt Lucy. In the end, Aaron was rushed to the hospital with a brain injury and both Dusty and Dom were arrested for the illegal fight.

Lucy, angry, left Dusty but later relented when he made a deal with the cops to rat out Dom for immunity for himself and Rafi (since Rafi had been coerced into using the gloves) Dusty knew that Dom wouldn't let his arrest go unpunished and was convinced that they were all in danger. He appeared to be correct when Craig went missing. Despite her mother's assurances that Craig was probably fine, Lucy was worried and asked Rafi's help in locating her dad. After lying to her mother that she was going on a ski trip, Lucy and Rafi set out to locate Craig. Unfortunately, Dusty was right again about the danger and Lucy and Rafi found themselves under attack by Dominic's men. Soon, the pair found themselves stranded after the plane they were on crashed. Deathly afraid, Lucy turned to her friend for comfort and the pair made love. Luckily, they were rescued by Dusty and returned to Oakdale, where Dusty professed his love for Lucy. Now Lucy had a problem. She was in love with Dusty but she still couldn't just toss aside the feelings she had for Rafi. Not wanting to hurt either man, Lucy confided in her father, who trying to curb his controlling tendencies, simply suggested that she do what was right for her. In the course of the conversation, Lucy realized that what she really wanted to do was attend college and make a life for herself. So, with a heavy heart, Lucy said goodbye to her family, as well as Rafi and Dusty and went off to attend Williams College.

Lucy enrolled in an accelerated medical program and returned a few years later to intern at Memorial. When she returned, her father was in prison and the child he conceived during a one-night-stand with Jennifer Munson, Johnny, had been adopted by Dusty. Not long after Lucy arrived in Oakdale, Jennifer became ill and was rushed to Memorial with pneumonia. However, since she had been separated from her son for so long (thanks to a baby switch courtesy of Craig), Jen was desperate to leave the hospital. Since Chief of Staff, Bob Hughes, was called away on an emergency drill, he put Lucy in charge and told her to contact him if she needed help. With Bob indisposed, Lucy was on call when Jennifer demanded to be released. Lucy tried to convince Jen that she needed to stay overnight but Jennifer was adamant. Jennifer signed a waiver stating she left against doctor's orders and went home to Dusty and Johnny. That night, Jennifer's heart gave out and she was rushed to the hospital. Nothing could be done and Jennifer died in Dusty's arms. Lucy had to deal with her own guilt and Dusty's anger as well as Dr. Hughes's' disapproval (since he felt she exercised poor judgment for not calling him before releasing Jennifer). Lucy's cousin, Luke, was dealing with his own problems-his estrangement from his adoptive father, Holden. Lucy tried to smooth the waters and convince Luke to return home but Luke, with encouragement from his biological father, Damian, was convinced Holden hated him for causing Lily's fall. In the process of looking after her comatose Aunt Lily and befriending Luke, Lucy bonded with the older, suave Damian. When Luke discovered that Damian was terminally ill and made plans to move to Malta with him, Holden became convinced that Damian was lying and asked Lucy to investigate. Lucy staged an argument with Lucinda in front of Damian and he offered to let Lucy move into Fairwinds with him and Luke. Lucy accepted his offer.

At this point, Dusty's anger began to soften and he warned Lucy that she was going into a dangerous situation. Lucy refused to listen. After almost getting caught looking through Damian's desk to get a peek at his medical records, Lucy decided to break into Memorial's record room to get a look at his old records. Damian's file was gone. Lucy stepped up her plan to rummage through Fairwinds by drugging Damian. Damian caught on to her plan and switched the tea cups, drugging her! He had her locked in the wine cellar while he and Luke left for the airport to go to Malta. At the same time, Dusty arrived at Fairwinds looking for Lucy and wound up imprisoned himself. The pair escaped and Lucy rushed to the airport to stop Luke. When she arrived, the police were there and Damian confessed that his plan was to take Luke away in order to get his inheritance. Though she could have brought Damian up on kidnapping charges, Lucy left that decision up to Luke, who decided it would be better to just let Damian slink back to Malta.

Dusty and Lucy grew closer again despite warnings from Barbara that Dusty was just on the rebound. Things got complicated when Craig returned to town. Fresh from having had his conviction overturned, Craig was determined to get custody of his son. Dusty thought Lucy would side with her father but she convinced him that she felt Dusty was Johnny's real father. With help from attorney Tom Hughes, Craig was awarded visitation rights. Dusty's only hope was for Craig to be in jail again. Dusty asked Lucy to bring Craig up on kidnapping charges. Though Craig begged her not to turn against him, Lucy knew that Craig was not fit to raise a child and was determined to testify about his kidnapping of her years earlier. Craig got to Lucy when he seemingly tampered with Dusty's brakes and Dusty nearly died. The day of the trial, Craig played on Lucy's fears that if she were to testify, something awful might happen to Dusty. Fearing for Dusty's life, Lucy stated in court that she could not be absolutely certain that it was Craig who kidnapped her. Dusty decided to do whatever it took to get Craig out of Johnny's life and showed Lucy his gun. After telling Emily, Lucy warned Craig to back off but he refused. During that conversation, Dusty called Craig to meet with him. Lucy rushed out to stop what was about to happen. She managed to knock Dusty down but Dusty shot Craig anyway. While Dusty was in jail for the attempted murder of Craig, Craig recovered and told Lucy he planned to get custody of the son he would name Craig Jr. and keep him away from Jennifer's family. Lucy knew the war over Johnny wouldn't end until someone was dead and chose to protect him by taking him away from Oakdale forever.

When Johnny was five, Lucy returned to Oakdale with him. She initially made contact with Alison and explained that Johnny needed a bone marrow transplant. Alison agreed to help Lucy and Johnny, rented a room in her name for them at the Lakeview, and having access to the hospital, agreed to assist Lucy in finding a donor for Johnny. Lucy gave Alison a list of Johnny's blood relatives in Oakdale and asked her to test all of them for a match. When Lucy took a shower, Johnny slipped out of the room and saw Josie who he thought was his mother. Lucy called downstairs, looking for Johnny, and the desk clerk promptly returned him. Lucy took a stir-crazy Johnny to Old Town where he once again mistook Josie for his mother. When Lucy tried to hustle Johnny away, he called her "Lulu". Josie put the pieces together when she browsed through a staff directory at Memorial. Katie was discovered to be a suitable match for Johnny and Lucy went to WOAK to ask for her help. Katie agreed but when she insisted Craig should know, Lucy explained that Craig had proven his inability to parent and didn't want him to find out. While Lucy was at WOAK, Dusty had been tipped off and found Allison with Johnny at the Lakeview. When Lucy returned, she had to answer to Dusty for the kidnapping and explained Johnny's situation. Lucy explained that she knew she'd made Dusty angry, but she had taken Johnny away in order to protect him. Dusty informed Lucy that from that point on, he would be the one calling the shots. Lucy begged that wherever Dusty was going, that she go, too. She argued that she loved the boy, and he needed a doctor with him. Lucy vowed she would rather never see Johnny again than let Craig have him. Dusty agreed to include Lucy.

With Katie on board and the doctor at Memorial concurring with Lucy's recommendation for an immediate marrow transplant, Lucy suggested it might be safer to do the transplant in Chicago where there was less chance Craig could locate them. Dusty told Katie the change of plans, and she reiterated it was not fair to leave out Craig. Katie then took it upon herself to tell Craig. Lucy was packing for Chicago when she answered the door thinking it would be Dusty. Instead, she found herself face to face with her father. Craig insisted they begin the transplant immediately, in Oakdale and Lucy agreed. During the procedure, Craig asked to speak with Lucy alone. He reminded her that she had kept him away from his son for two years, and he assured her that he had changed during that time. He pleaded with her to take the time to get to know him again. Lucy said she still blamed him for the death of her brother, Bryant, but Craig promised to work with Dusty for the boy's good, and Lucy said she would at least try to give her father a chance-but she had to put the boy first. When she returned to the hospital, she told Dusty she still wanted the three of them to go away so that her father could never find them. Craig overheard and called Margo, demanding that Lucy be arrested for kidnapping. On a hunch, Dusty told Lucy not to return to the Lakeview and to go to Metro where Derek Coburn would take her somewhere safe. When Dusty arrived at Metro, Josie tipped him and Lucy off that Margo was actively seeking Lucy for arrest. Lucy berated herself for believing Craig's big talk about family. With much persuasion, Dusty convinced Lucy to leave town. She agreed under two conditions. First, Dusty had to make peace with Craig and stop fighting, and second, she needed to see Johnny one more time before she left. Dusty and Josie managed to send Craig and Margo on a wild goose chase for Lucy so she could say goodbye to Johnny. Lucy told him to trust Dusty while she was away doing some "grown-up things", gave him a tearful goodbye and was rushed away to the Worldwide jet waiting for her at the airport.

The next year, Lucy returned to Oakdale at Lucinda's request. It wasn't long before she and Dusty fell into bed together. Unfortunately, Dusty immediately regretted it since he was in love with someone else. Meanwhile, Lucy met her half-brother, Gabriel, the illegitamate son of Craig and Lydia Carras, the Montgomerys' maid when Lucy was a child. Lucy and Gabriel, who was kept a secret from Craig for years, bonded over Lydia. Realizing that Lucinda had lured her to town to distract Craig, Lucy left town with Sierra.