Arlene Vaughan came to Pine Valley to retrieve daughter Hayley, who’d run away from home in Chicago after the death of her father, Harry. Arlene ran into long-ago lover Adam Chandler, and it was revealed that he, rather than Harry, was Hayley’s biological father.

Arlene realized that Alec MacIntyre, who was engaged to Hayley, was really after her company, and threatened to spill the beans. Alec took advantage of Arlene’s alcoholism and neediness, and seduced her, forcing her to promise to keep the secret. Arlene tried to turn the tables on Alec, blackmailing him into sleeping with her.

Hayley and Mateo were becoming close, which made Alec jealous and nervous about his plan, so he and Hayley eloped and he proceeded to empty the company’s bank accounts. Arlene stepped in, again forced Alec to sleep with her, but this time caught the scene on tape. When Arlene pushed too hard, Alec tried to kill her by forcibly pouring alcohol down her throat. Hayley and Mateo arrived in time to save Arlene, Alec went to jail, and Arlene left Pine Valley.

Arlene returned five years later, in time to be part of the denouement of the Janet and Trevor story. Still drinking, she crashed her car into the front of the Brooke English House and became Brooke’s "project", staying at the House. When Stuart Chandler disappeared, presumed dead, she jumped to take advantage of the situation, and quickly snared a devastated Adam into marriage. Intercepting a phone call from Marilyn at the Diner, she knew that Stuart is still alive, but kept the info from Adam out of fear that he will know she started the whole problem by running into Stuart with her car when she’d been drinking. She and Adam have bought a bar, renamed Adam’s Place, as part of a plan to cause the downfall of Chandler Enterprises, currently being run by Liza and Tad.

Stuart reappeared, but Arlene, desperate to keep him a secret, locked him, with Marian,  in the attic at Chandler Mansion.  She let him out just in time to coax Adam back to life after he was injured in the collapse of the Col-Mar tower.  Adam, after his recovery, vowed to get his life back on track with Liza and Colby and wanted nothing further to do with Arlene, but she produced a trump card - she's pregnant with Adam's baby.