Felix must decide where his future lies; the farm or the hotel. The choice is too difficult and Felix rebels. He is too tired to work well at either the farm or hotel; and gives up his job. Alec, seeing how unhappy Felix is, urges him to resume working at the hotel. Felix befriends a millionaire, who teaches him the importance of Fathers and Sons and how to ""talk"" to his father.

The family is planning a 50th birthday party for Hetty. Her publisher, no longer wants ""Romance"" novels from her. Muriel Stacey returns to town and takes over the general store. When Hetty succumbs to appendicitis, her out look on life changes. She decides to write about what she knows; her childhood and the beauty of the island.

This episode is Heather Conkie's shining moment as a writer for 'Avonlea', as we are given insight to the young Hetty King

Plans are on the way for the American millionaire (see Home Movie) to turn the old cannery into a distillery. An outraged Hetty persuades H.B. Dunn sells the cannery to her, but she doesn't know how to run it. Jasper and Olivia take over the day-to-day running of the cannery, and use Gus Pike's expertise in operations. Problems arise that must be solved. Gus and the King family pitch in, even Felicity, and all the lobsters are canned; so Hetty decides The Dales must buy the cannery from her.

Davey Keith is already in trouble after the first day of school. After getting caught fighting in the playground, Clive Pettibone assigns him one hundred lines to write as punishment. While this might be difficult enough under any circumstances, for Davey it is doubly severe because he cannot read or write. After he inadvertently lands Sarah in trouble she learns his awful secret. With her help, however, he begins to learn how to read.

Avonlea is hosting the annual drama competition and Hetty plans to win.She makes a wager with Eleanor McHugh,betting a secret family recipe.Asking Janet to play the lead role,She callously recasts the role when the opportunity arises,giving the part to Isabelle Carrington,famous stage actress.However it turns out that Isabelle's refusal to play the part as originally written (by Hetty of course)forces Hetty to fire her only one day before the competition is set to begin.

So Hetty must beg Janet to retake the lead role in time to save the play.

The Kings find a man in thier barn and give him work, but is he all that he seems?

Felix wants to enter the steeplechase; but Janet is afraid he'll get hurt. He trains for the race without her knowledge and is injured. Janet and Felix, face their fears; and he enters the race. Clive Pettibone wants to prove to his son that he is still as good a rider as he used to be and also enters the race. Who will win???

John Hodgeson, a candidate for Prime Minister, stays at the White Sands with his daughter. Adeline takes a liking to Felix. Alec considers a life in politics after John's encouragement.

The King family finds out that Cecily has TB and the townsfolk try to avoid contact with the King family.

As penance for a careless accident he caused, Hetty orders Davey (he and Dora who Hetty is looking after for the afternoon) to perform three good deeds. The first is directed toward Jasper. Davey is the cause of yet another accident in Jasper's laboratory, but one that helps Jasper create a new unbreakable ceramic-like material. Olivia thinks that Jasper should patent it and use it for widespread purposes. The only person who Jasper believes could assist financially and with business expertise is his black-sheep cousin Jeremiah Dale - he being the black sheep because he went into business. However Jasper does not want to ask as he has not spoken to Jeremiah in over twenty years since Jeremiah made his life miserable when they were growing up. Looking remarkably similar to each other, Jeremiah used to pretend to be Jasper while wreaking havoc. Without telling Jasper, Olivia decides to ask Jeremiah on Jasper's behalf, a move which doesn't sit well with Jasper. Olivia, Jasper and Jeremiah have to reconcile their feelings if there is any chance of Jasper's invention making a mark in the world. Jeremiah's plans are to seek investments of $8,000 to make the business fly. But Jasper and Olivia have no idea what Jeremiah's exploits have been in the past twenty years. Those exploits ultimately direct the success or failure for Jasper, Olivia and the investors of what Jeremiah has coined "Jasperon Incorporated".

Certain people in Avonlea are hoping for a progression in romance. Ever since Morgan went away to military school, Izzy has been Clive's singular focus. She feels he needs a wife, and searches through the list of spinster women in Avonlea for a suitable candidate. Izzy sets her sights on either Hetty or Muriel. With an established relationship, Gus and Felicity each have news which could affect their future. Gus has been promoted to Assistant Manager at the White Sands Hotel, meaning that he now has the financial means to ask Felicity to marry him, which meets with Alec's approval. Felicity however has just been accepted into Dalhousie University's medical school in a fast tracked process. Because Gus wants to get married now, whereas Felicity wants to wait until she finishes school - which could be upwards of seven years - Gus and Felicity have to decide what to do about the possibility of a future together. Gus' thoughts are affected by Matt O'Donnell, an old sailor colleague who is passing through Prince Edward Island, while Felicity's are directed by Dr. Jones' practice as well as the financial ability of the Kings to send her to school for seven years.

A new minister comes to Avonlea; Rev. Elliott. However, many of the townspeople are put off by his use of humor during sermons. Hetty, in particular, is put off by his son Booth's forwardness in asking Sara to dance a new dance, the Ragtime, with him. Janet is the only one who makes friends with the minister's eccentric wife Viola.

When Janet and Viola go for a joy ride in Miss Stacey's new automobile, it raises rumors that Mrs. Elliott has a drinking problem.

Felicity is at medical school, and Felix is visiting,when they spot Gus in the market place with a strange woman. Felicity mistakengly thinks he is engaged to this woman,Charlotte Ames, and returns Gus's ring. Gus finds Felicity at school and they decide they 'need to talk'. As Gus walks Felicity back to her rooming house they encounter a flower lady, wandering the streets, who thinks that Gus is Captain Crane. Together, Gus and Felicity decide to bring her back to Avonlea to solve a mystery. Gus thinks the flower lady may be Eliza Pike, his 'deceased' mother. A photograph of Eliza and Abe Pike together, makes Gus realize that she is indeed his mother. Hidden behind this wedding photo of Eliza and Abe is a photo of Captain Crane, whom Gus begins to believe is his real father. He and Eliza go to Jamaica to find the captain. Before he leaves, Gus implores Felicity ""...say you'll be mine."" ""I've always been yours, I'll be yours forever"", she assures him. Gus gives her his ring again

The White Sands Hotel is the setting for a Bachelor Auction. Each bachelor makes up a picnic basket and a lady bids on it; the bachelor then shares the basket with the lady. Felix and Izzy's romance begins to blossom; Becky Lester has her eye on Davy; Hetty looses Clive Pettibone to Muriel Stacy; Simon Tremayne has his eye on Hetty but fears he has no hope; but the dance at the hotel, to end the day, finds Hetty is Simon's arms.

Cecily is in a sanitarium in New York, where she meets Louie, a street smart boy. Bored with their treatments the two get in to so much mischief, Cecily is in danger of being sent home. Janet and Alec arrive and try to smooth things over. Cecily tells them of Louie's sad life, and they plans a Christmas celebration for a poor boy who has never had one. Louie dies shortly thereafter; but Cecily settles down determined to get well.

Janet has time on her hands for the first time in her life. Felicity, Daniel and Cecily are all away from home. Felix is busy at the hotel, Alec's time is taken up by the farm and his lodge. When she sees a chance to earn ""extra"" money, Janet jumps at the chance; but all of the money makers end up costing Janet more than she makes. Janet must find a way out of her problem without telling Alec; the owner of the company she is dealing with makes threats, and Alec comes to her rescue.

Sara returns to Avonlea with Nanny Louisa ready to announce plans to go to Paris to study. Nanny and Aunt Hetty begin to squabble over Sara's future; they both have made plans for her with out consulting her. Sara loves them both, but is determined to go to France. Felix and Izzy are having romance problems and Sara nudges them in the right direction.

Felix goes into the fox raising business with Izzy; but when he needs to get a bank loan he trades Izzy for Nat Lester as his partner. Nat spends most of the money trying to impress people, Felix is in danger of loosing Izzy as his friend, and Felicity needs to learn to see life from other peoples perceptive. The foxes escape and Felix must find a way to repay the loan. Izzy accepts Felix's apology and they resume their friendship.

Rose Cottage is ""empty"" now, so when Rachel has a stroke Hetty agrees to take in Dora and Davy until she fully recovers. Rachel goes out west to live with her son. Once again, Dora and Davy have made a major change in their lives. Davy feels responsible for Rachel's stroke, and causes an unbelievable amount of trouble. Hetty finally gets to the root of Davy's guilt and she, Dora ,and Davy settle down to a new life at Rose Cottage.

Davy finds that school is not to his liking, and decides not to go. Hetty thinks making him get a job will teach him to appreciate school. Jasper teaches Davy all about running the cannery. He and Jasper bond, and become friends. Hetty is worried that Davy will never return to school, until Jasper shows Davy how education will improve his life and his job. Davy goes back to school with a new attitude.

Clive and Muriel decide to be married, until Izzy's hostile behavior convinces Muriel to cancel the wedding plans. Davy is tricked out of the money his classmates saved to buy their teacher a wedding gift. Dora and Wiley Lester help him get the money back. Arthur convinces Izzy that having Muriel in their lives will make things better. Hetty has taken over Clive and Muriel's wedding plans; but they surprise all by taking the Pettibone children with them and having a quick ceremony in Carmody.

After recovering from her stroke, Rachel Lynde embarks on a return trip from her son's home out west to Avonlea. On the way, she suffers a second stroke that leaves her unable to talk. Hetty King takes her in to nurse her back to health but Rachel's son wanting to take her back to BC with him. Hetty, Davey, Dora and Olivia all aid in getting Rachel talking again, with help from the most unlikely source - Pierre (the chef at the White Sands).

An impoverished Polish countess visits the White Sands for her son's wedding, as does Pierre's mother, whose daughter is the bride. However, there's a twist when it is revealed that Pierre has been telling his mother he owns the White Sands.

Felicity has completed her first year of medical school, and passes with flying colors. Dr. Snow offers her a job for the summer, and Felicity learns the ""human side"" of medicine rather than the "" text book"" side of it, and it is a real eye opener! When Dr. Snow and Felicity are unable to save Felicity's friend, Colleen Pritcharts, life during child birth Felicity re-examines her plans to become a doctor and awaits the return of Gus.

Cecily comes home from the sanitarium with such high hopes, but Janet and Alec are afraid that she might have a relapse and treat her as if she is still ill. The towns people are worried and refuse to let Cecily return to school. Aunt Eliza convinces Alec and Janet that treating Cecily as if she is well, is they only way that everyone's life can get back to normal. Felicity is dealing with her choice to leave medical school, and eagerly awaiting Gus's return; with plans to go ahead with their marriage. Felicity is devastated when she learns that Gus's ship has gone down, with all hands lost at sea. Gus is presumed dead.