Time Frame: 1909-1910
Gus meets a mysterious woman in Halifax, who he believes holds the secret to his past. The first annual bachelor auction turns sour when Simon Tremayne is misled into believing that Hetty will bid on him. Felix and Izzy purchase a fox farm, but their friendship is threatened when Felix must replace Izzy with another partner. Rachel suffers a stroke and leaves Davey and Dora under Hetty's watch. Upon her return, Rachel struggles to regain her speech and overcome the belief that she is an invalid. Felicity reconsiders medical school after a friend dies during childbirth. Cecily returns from the sanitarium and Felicity learns that tragic news that Gus's ship went down and all hands were lost.
While Davy is horseplaying, Rachel suffers a stroke and must go to Saskatoon with her son. Davy and Dora stay at Rose Cottage where they become a handful for Hetty.
Janet begins working at home for ACME company. She finds out that the company is nothing but a scheming operation and is harassed by the owner.
Clive proposes to Muriel, which causes Izzy to feel mixed emotions. The school children plan to buy a wedding present, but plans go wrong when Davy loses the money.
Rachel suffers another stroke while returning to Avonlea. Her inability to speak causes the town to gossip about her mental capabilities.
Simon and Hetty prepare for a royal wedding but mishap ensues when Pierre's mother believes that her son owns the hotel.