<P> Skyler is in the middle stages of pregnancy with Holly at the beginning of the show . When Walt is diagnosed with terminal lung cancer, he initially does not tell his family . When Skyler learns about the diagnosis, she is both devastated by the news and outraged that Walt withheld the information . Their relationship becomes strained, both from Walt's reluctance to seek treatment and from his unexplained absences following his diagnosis . Skyler figures out Walt's connection to his former student, Jesse Pinkman (Aaron Paul), and confronts Jesse at his house . When she confronts Walt, he claims that Jesse is his marijuana dealer . Unbeknownst to Skyler, Walt has taken up cooking methamphetamine with Jesse in order to ensure his family's financial security after he dies . </P> <P> Skyler faces other problems, as well . When Marie offers an expensive white gold tiara as a gift for Holly's baby shower, Skyler attempts to return it to the jewelry store, only to learn that her sister--a kleptomaniac--had stolen the item . Skyler is detained by the store's owner and escapes arrest only after faking labor pains . The incident causes serious problems in Skyler's relationship with Marie, who emphatically denies that she has done anything wrong . </P> <P> When Walt is kidnapped by Mexican drug kingpin Tuco Salamanca (Raymond Cruz), his family--unaware of the connection to Walt's criminal activities--organizes a search for him as a missing person . When Walt escapes, he fakes a "fugue state", claiming to have no memory of the last few days . The marriage continues going downhill thanks to Walt's continued absences, devolving to the point where Skyler refuses to speak to him . Skyler is also perturbed by Walt's resistance to his son's efforts to raise money for Walt's cancer treatments, unaware that most of the donations actually constitute drug money laundered by Walt's corrupt lawyer, Saul Goodman (Bob Odenkirk). </P> <P> Still unaware of Walt's meth business, Skyler believes his illness has strained the family's finances and returns to her old job working as an accountant for Ted Beneke (Christopher Cousins), whose sexual advances had caused her to quit earlier . She increasingly relies on Ted for emotional support as her husband grows distant; she also reluctantly covers up Ted's tax fraud . Shortly afterwards, Skyler gives birth to a daughter, Holly; Walt is absent for the occasion, having been forced to appear for a meth transaction with the drug kingpin Gus Fring (Giancarlo Esposito). </P>

When does skyler find out walt is a drug dealer