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.

Felicity continues to mourn a year after she learns that Gus' ship was lost at sea. While attending a town meeting, she is maneuvered into excepting a position on a committee to assess the old Lloyd mansion. Upon examining the house, the committee discovers four orphans living there. Stuart McRae, a new banker, supports Felicity's idea that the house should be converted into a fondling home. The project, along with Stuart's affections, promises to help Felicity get over her loss of Gus.

The Dominion Day picnic finds Felix in jeopardy of losing Izzy's friendship and Jasper trying to tell Olivia he has been offered a teaching position in England. The boys in town are all making eyes at Hannah Hubble while the girls look on with growing irritaion.

Davy sees a 'mermaid' in a traveling show and is smitten. He has his head full of dreams and fantasies. Rachel is improving since her stroke and is learning to enjoy the ""little things"" in life. The traveling show tries to swindle the town out of it's share of profits; but Davy discovers what is going on and puts a stop to it.

Izzy is at loose ends. Felix has betrayed her, and her father is involved with his new bride. After writing to her mother's sister, Izzy is surprised when her aunt arrives in Avonlea. The woman dazzles Izzy with tales of her glamourous life, and Izzy decides to return to Boston with her Aunt Lillian. Lillian is exposed as a woman in financial ruin, and Felix makes a heartfelt plea to Izzy to stay in Avonlea with him. As home and love are strong ties, Izzy decides to stay in Avonlea.

Janet King's sister, Abigail, and Great Aunt Eliza return to Avonlea, turning Janet's world upside down. Janet hints to Abigail, that there may be a wedding in the spring and shows her a dress pattern she wants to make. After several remarks Abigail made to Cecily are told to Alec, he thinks Janet is pining for the engagement ring he was never able to afford. Alec is determined to get Janet a ring and takes her wedding band to ""size"" the new ring; Janet thinks she lost her band and tries to get a replacement

Just as Simon Tremayne receives an offer to buy out the White Sands hotel by a buyer who wants to modernize it, Hetty learns that the school is to be closed down and its students sent to school in Carmody. Her devastation is tempered by her blossoming romance with Simon; she soon accepts his proposal of marriage. However, pressure on both of them to fight off the idea of losing their respective jobs (Hetty calls for a comparative test between the students of Avonlea Public School and those of the Carmody School) makes them realize that, though they may love each other, they are too career-oriented to be married to one another.

When a famous song writing team come to the White Sands hotel; Hetty wants no part of them until she learns that they are ""intimates of the King o England"". They are to be the stars of her musical at the hotel. When Felix tries to interest them in Uncle Jaspers ""recording device"" they are more impressed with Alec's singing than they are the electronics. Alec has a chance to go to sing on Broadway or remain in Avlonlea.

The adults are away from King Farm when a solar eclipse is to take place. Cecily accidentally destroys money meant for charity and must replace it. Felix comes up with the scheme of renting out the farm house as a hotel; to replace the money and to show Simon Tremayne that he would make a good assistant manager at the hotel. Jasper's cousin Selina becomes infatuated with one of the guests, an Italian professor. When Janet arrives home, the place is in chaos.

Two orphaned brothers arrive at the Avonlea Foundling Home and bring trouble and strife with them. They are looking for their big brother,Jim, who arrived in Canada before they did. They steal money from Hetty, cause mischief in town and make trouble for Davy. Davy ""borrows"" money from Hetty and takes the boys on a train ride to Halifax to find their brother. Hetty takes Davy to task for his actions; but he has learned a valuable lesson. and we see that Davy is finally growing up.

Great Aunt Eliza is about to turn 90 years old and Janet and Abigail plan a party to celebrate. Cousin Winifred, arrives and stirs up old sorrows for Eliza. They once both loved the same young man. Winifred finally reveals to Eliza the true state of the young man's heart. Eliza and Winifred make their peace with each other.

A mysterious telephone call to the King Farm leads Felicity King, mere days before her wedding to Stuart McCrae, and Hetty King in search of Gus Pike, who had been reported drowned at sea. After a long trip to South Carolina and running into several dead end leads, Felicity and Hetty find Gus had survived the ship wreck...however, Gus has lost his sight in the accident! Now it is up to Felicity and Hetty to convince Gus to return home to Avonlea...and Felicity has some hard choices herself to make. Will she honour her engagement to Stuart, a kind and gentle man, whom she does not love...or will she return to the arms of the boy, now man, that has always held her heart, Gus Pike?

Jasper returns from England to find that Olivia has taken in Lottie, a young woman recently fired from the Carmody cannery, and her baby. Meanwhile, Eulalie Bugle and Archie Gillis are campaigning for Avonlea to amalgamate with Carmody, a situation that Alec, Bert Potts, and Stuart fight vigorously with a counter-campaign. An emotional address by Jasper seals a victory for the anti-amalgamation activists, but their luck soon changes when the Dale Cannery is struck by lightning and burns to the ground. Faced with no job, Lottie leaves her baby with the Dales and disappears.

Gus' return to Avonlea stuns the King Family and forces Felicity to make a decision between her childhood sweetheart, Gus and the kindly banker, Stuart. In the meantime, Jasper and Olivia have decided to leave Avonlea, after the disastrous Dale Cannery fire and Hetty is furious. Felix makes a decision that stuns his family, especially his mother Janet, and a certain familiar character makes her prodigal return to Avonlea for Felicity's wedding day.