Sara returns to Montreal, to live with her father, but a tragic accident causes her return to the island. Once only motherless, Sara finds her self suddenly orphaned and searching for answers. A traveling circus is in Avonlea and Peter takes her, hoping to cheer her up. Instead, Sara decides to visit the fortune teller, who claims to communicate with the deceased. Sara's life is placed in danger and it is Uncle Alec who saves the day.

Janet King's Great-Aunt Eliza comes for a visit, and sets the King household on it's ear, as Janet tries to please her guest, while she herself is feeling quite unwell. Alec finds out that playing cricket, is not as easy as it used to be when he was a younger man. Felicity decides that she is now ""grown up"" at age 12 1/2 and develops a crush on a visiting rival cricket player. Mooning over David Hawes, Felicity longs to receive her ""first kiss"". Sara and Felix make a new friend, Gus Pike, a young sailor, recently arrived in Avonlea and looking for work. Alec offers his barn for Gus to stay in, and also some work until the cannery begins hiring. It is wise Great Aunt Eliza who realizes why Janet is feeling unwell, it is announced that the family will soon have a new baby. Felicity finally gets her kiss and the family is never the same after Gus Pike enters their lives.

Muriel Stacey, is returning home to Avonlea to see her old school house and her school chum Hetty King. Feeling threatened by her perceived former-rival, Hetty goes out looking for new students. Gus Pike is now working at the cannery, and wants to learn...reading, writing and how to be a gentleman....Hetty is delighted with his enthusiasm. After an accident at home, Hetty is temporarily replaced at school by Muriel, who not only does not want to replace Hetty, but organizes the children to do a ""tribute"" to her. Gus plays a fiddle solo to express his gratitude to Hetty.

Dora and Davy Keith come to live at Green Gables, with Marilla, a distant relative, after their parents die. Only a temporary arrangement, until a uncle could be located, Marilla is faced with the prospect of turning two children over to an orphanage or losing the friendship of Rachel Lynde, because Davy has proven to be a handful. Rachel makes matters worse beacause she is suffering from a tooth ache, but refuses to go to the doctor...and then there is that naughty pig.

Hetty King runs in to her old beau, Romney Penhallow, at a wedding and refuses to speak to him, because of an age old quarrel between the two. Romney pursues Hetty and makes her speak to him and they enjoy some quiet time together. Romney has a sad secret, which is finally shared with Hetty. Their friendship becomes more important to both of them, and they are able to make peace with each other. Also, because of Romney, Hetty and Rachel Lynde are finally able to bury the hatchet and become friends once again.

Edwin Clark, an old beau of Olivia's has returned to Avonlea, intent on winning her hand. Hetty had chased him off years before, but as he returns wealthy and successful, Hetty no longer objects. Sara thinks Olivia is better suited to shy and awkward Jasper Dale, and encourages him to pay court to her. Olivia is torn between a former love and a new love, however her decision on who would be the best man to wed becomes quite clear, when she sees how the two men react to the emergency that occurs when a small boy falls down an abandoned well. My favourite quote: ""Ain't that the pistol""~Jasper Dale

Andrew King's father, Roger, returns from the jungles of Brazil and a doting Hetty heaps praise on him. She even plans a reception in his honour, at King Farm and placing Janet in charge. Alec, the elder brother and heir to the family farm, is put in a bad light, when he loans money from the family trust to a neighbor in need. This not only puts a strain on Alec and Roger's relationship, but their sons, Felix and Andrew are also affected, as they argue over Grandfather King's fishing basket. Fists fly, lessons are learned and fences are mended between the siblings.

Gus Pike is working hard at school and taking odd jobs around town when Captain Ezekiel Crane, the reclusive lighthouse keeper, offers him a job and a place to stay. Rachel Lynde is convinced that the island is being over run by bootleggers. The children believe they see a Ghost Ship near the lighthouse. Abe Pike, former first mate for Captain Crane, arrives in Avonlea, having escaped from prison and claims Gus as his son. Abe fights with Ezekiel and falls into the ocean, as the towns people storm the light house looking for bootleggers.

Sara finds an old gold coin while helping Gus and Captain Crane gather fire wood. Captain Crane informs her that the island is a burial ground of pirates treasure and that her coin very likely came from a treasure. Rachel Lynde, Janet King and Aunt Hetty all go looking in different places for treasure. Gus, Sara and Felicity are put in danger when Captain Borden, a former shipmate and friend of Captain Crane's, arrives in Avonlea. Borden believes that Ezekiel has knowledge of the location of a lost Spanish treasure. Captain Crane leaves the Avonlea after tricking Borden and giving Gus the lighthouse, as a home, and a ruby and gold ring.

Bored with everyday life, the King cousins decide to create their own newspaper. This helps to keep them entertained and goes quite well, until the children's ""made up"" advice column (Madame X) gets mixed up with the Avonlea Chronicles real news. Olivia, working as a reporter for the Chronicle, and temporarily acting as editor, is hard put to defend herself for the column mix-up. Then, the Chronicle office is robbed and it is up to Jasper Dale to catch the thief and exonerate Olivia. Favourite quote: ""Snoring is boring."" ~Madame X

Pigeon Plumtree, is a famous actress and Sara's cousin, who has decided to make a stop in Avonlea. Sara has stars in her eyes when Pigeon claims that she has the making of becoming a great actress. Pat Frewen, resident pig farmer is enchanted by Pigeon, much to the distress of Dorathea, who has waited 20 years for Pat to propose to her. Sara sorts out this odd love triangle and decides to stay in Avonlea.

""Rollings Reliable"" is sponsoring an essay contest to honour the mothers of the town. When Sara decides that Aunt Hetty should be her subject for the contest a scornful Sally Potts and Felicity tell her only a ""real"" mother could be entered in the contest. Having found out that Sally and Felicity share a birth date, and were delivered by the same doctor, a mischievious Sara tells them they were switched at birth. Both girls and their mothers agonize over this and learn that it is ""who raises the child, and not who gives birth"" that makes a woman a mother. Felicity enters Sara's discarded essay in the competition and Hetty wins.

Archie Gillis challenges Alec King, by refusing many who want to play ice hockey, a place on the Avonlea team. Alec starts a team of his own with the 'misfits' that Archie refused. With the help of Miss Stacy and Peg Bowen, after Alec sprains his back and can't play, the 'Misfits' show Archie Gillis and his 'Avengers' a thing or two. Back at King Farm, Janet is in need of help when the baby arrives sooner than expected, and Sara is there to help after the capable Felicity passes out.