Highlights: A conflict erupts between the King and Dale family. Olivia goes into labor and nearly loses her baby. Hetty takes a sabbatical from teaching and begins to write pulp romance novels. Clive Pettibone replaces Hetty as school teacher, but his militant methods of teaching becomes intolerable for the schoolboard committee. Gus Pike begins a heated rivalry with Arthur Pettibone over the right to court Felicity. An American Industrialist plans to purchase Avonlea and convert it into a town of the future. Hetty and Jasper arrange a motion picture presentation to show the town the importance of their community and to reject the proposed offer.
Outstanding Children's Program
Cable Ace Awards
Best Dramatic Series
Best Actress (Jackie Burroughs)