Miss Brownell leaves her post as teacher and marries the school inspector. Her replacement is Mr Carpenter, a once university professor. He encourages the children to find their own talents, the only problem is that he drinks. Emily, Perry, Cousin Jimmy and Aunt Laura have to get Mr Carpenter cleaned up for his final evaluation after he staggers to New Moon drunk.

Emily decides to find out the truth about Ilse's mother. Cousin Jimmy and Perry, along with Ilse, break into a warehouse trying to find out if she sailed away or stayed in Blair Water. During a faver the truth is finally reveled.

Family bickering at it's best abounds at New Moon when it is left to Isabel, Laura, Emily and Jimmy. Isabel, who doesn't want to share wants to get the documents confirming this nulled and does everything she can. It is Uncle Malcolm who shows a side of him when Isabel goes too far to keep New Moon and he finally realises the truth about his family.

Lightening is said to be able to change a person's life and so it does for Jimmy who does indeed have a change in life. After the bolt strikes him Jimmy is left in a coma, desparetly wanting Jimmy to be okay Emily wishes that he could be a ‘man of great wisdom'. When he awakens her wish has been granted, the damage which he sustained from the well accident seems to have vanished. Life changes dramatically for Jimmy as he achieves everything including world acclaim. But nothing can be compared to the joy of seeing Eve again.

Isabel, knowing full well of Emily's plans, forbids her to enter into the ""Island Romance Contest"". Having written the story of ""Isabella of the Highland"" Emily reluctantly puts it away only for Ilse to find and submit. When it wins first prize Isabel wants Emily to renounce the award and takes both her and Aunt Laura to Charlottetown to do it. Ian Bowles makes a return to the series with a pregnant Margaux Lavoie. Laura must face the truth as the lies and deceit become too much

The attention of this episode is based on that old faithful story of love. The girls desperately want to ensure that marry and pray to St. Agnes for help. However, being the age they are, it is Cousin Jimmy who gets the answer when he falls for Eve Kinch. From a poor family, they seek shelter at New Moon. All goes well between the two until Eve's father, Abner finds out and loses his temper. Then the revelation comes, Eve is pregnant.

New Moon suffers tragedy with the death of Aunt Elizabeth who went missing at sea. The family then discovers that Elizabeth had borrowed money from Scottish relatives and that New Moon now belongs to them.

Oliver, Emily's cousin, announces that New Moon actually belongs to his father. His girlfriend Maida is pregnant and loses her job and is left penniless. Emily, Ilse, Perry and Teddy, get her settled in the Disappointed House and end up helping to deliver her baby. Maida leaves town, and Oliver takes responsibility for his child.

Emily is horrified when Aunt Elizabeth informs her that she must attend school. After a dreadful first day of being teased by the other students and meeting the mean teacher Miss Brownell, she meets Ilse Burnley and they become friends.

Aunt Elizabeth find Emily's treasured 'Letter Bills' hidden in the attic. Laura announces her engagement to the rest of New Moon.

While her friends all head off for Shrewsbury Emily is left behind in Blair Water because her Auth Ruth refuses to have Emily stay with her. Bitterely disappointed, Laura tries to cheer her up by telling Emily that she has left Ian for good. An ally of sorts then comes to Emily's help and her future takes a turn for the good, but things aren't so good for Laura who discovers something unexpected.

When a racoon savages Emily's cat Pandora, Aunt Laura takes the cat to Dr Burnley where they share a bitter-sweet moment. When Ian Bowles asks Laura to marry him, she says yes, but not with her whole heart.

Emily is raised by her father who encourages her to always follow her heart and dreams. But when her father dies leaving Emily all alone she has to be raised by one of her relatives, none of which want her. She hides under the table as they draw lots to see who will have to raise her. Aunt Elizabeth is drawn and Emily is sent to live with her, Aunt Laura and Cousin Jimmy at New Moon.

Emily moves to New Moon and Aunt Elizabeth forbids her to read or write fiction. Pandora, Emily's cat, is left on the side of the road by Aunt Elizabeth. After finding some old 'Letter Bills' in the attic, Emily uses the back of them to write letters to her father.

Emily discovers the ""Disappointed House"" which looks out over the seashore. She also gets a surprise when Teddy kisses her. A carpenter was building it for his wife-to-be when she called off the wedding days before it was set to take place. Both now dead, Emily must help the ghosts to see the truth so that they can finally be together. In the process revealing one of Aunt Laura's secrets. Emily also meets Perry Miller, who becomes the new New Moon chore boy.

While searching through the attic Emily comes across her mother's, Juliet, doll. Aunt Laura restores it for Emily. Then Aunt Laura meets Ian Bowles and falls in love with him...until she finds out the truth about him which sends her back home in tears.

Young Duncan McHugh blames himself for his mother's poverty and depression. After an embarrassing incident at school, Emily befriends Duncan and brings him to New Moon. But when Aunt Elizabeth finds out who he is she sends him packing. His mother Alma and Aunt Elizabeth had both been in love with the same man, but he married Alma. Emily, Ilse, Perry and Teddy also defy an order not to go into town to watch the hanging of a murderer.

The Devil is in Blair Water, or so says the Reverend Nicholas Pitch who has arrived in Blair Water to rid the town of him. Hysteria immediately follows as the townspeople are suspicious of everything and blame the Devil. Meanwhile, the younger townspeople start to ask questions about the Devil. Hysteria continues in what can be likened to the Salem witch trials. In all this it is Laura who become calm (the Devil has of course left her).

In a surprise ending for the season we watch four separate outcomes for Laura's wedding day. Each is seen in the imagination of Emily and for a change we get to see the full talents of the actors get a chance to shine. However, this episode also leaves the question, which was the real thing?

Ollie Murray who has been without his mother for a year is finally re-united with her. In the time which she has been gone much has changed in Blair Water, especially the death of Ollie's father, Oliver Murray Snr. who died in the Klondike. Maida sets out to prove her love for her son, but there is still the possibility that Maida is only after the gold which Oliver Snr. left his son.

One of the more hard to believe stories, this episode focuses on Perry and his life. His mother was sent to prison for murdering her husband ten years previous with an axe. Perry lived through the torments at school but he had long since forgotten about his mother. But Aunt Thom plans to break his mother out of jail and he has to help.

Vacinnation is what eventuates from this episode after Malcolm is put under quarantine for small pox. As always, no one listend to Dr Burnley's advise and the children get Malcolm off the ship concealed in a coffin. However fear takes hold when they realise that Malcolm bought a boy of six, Robbie Burns with him as well whose mother died on the ship. The community won't accept Robbie, who is only six, but black and Emily's efforts to make him feel welcome fail. Vaccination begins but then Malcolm falls ill…