The story began in 1939, with the declaration of war against Germany. From the outset the series focused on the Sullivan family of 7 Gordon Street, Camberwell, Victoria, along with neighbourhood friends, relatives, and associates. The majority of show's storylines related to the war, focussing on either the fighting itself or its effect on the Sullivan family.

It is a tense reunion for Maggie and Dave, after all these years. They talk together at the local pub alone. While at the same time, Grace is sitting at home alone. Tom meets up with Bert and is impressed. They end up drinking at the pub together and Maggie learns Tom is Dave Sullivans 2nd Son. Bert gets them both thrown out of the pub and Norm talks to Maggie about Dave. Tom later arrives home late at night only to wake Dave and Grace in his drunken state.

Grace informs John about Dave's decision wanting to join the Army. Tom heads out with Bert again to try and devise ways they can make money. The Kauffmans return to the their shop depressed after attending the Police station to register as 'aliens'. Grace invites Mrs.Jessup and Lil to come over to the Sullivans house for a cup of tea and to meet her friend from Burrabri. Lil almost faints and won't go. Mrs.Jessup goes to the Sullivans house without Lil and discovers there is a good reason Bert and Lil left Burrabri.