With the birth of Niamh's baby approaching the last thing she needs is a stressful visit from Ambrose's mother, Imelda. Kathleen discovers a miracle at the church 0 a statue has started to sweat. Within hours the town is filled with people and Peter is suspicious that several residents stand to gain from the 'miracle': Assumpta's doing good business at the pub; Padraig's got his first scoop for the local paper; Liam's and Donal's fast-food van is doing a roaring trade; and father Mac is happy to see the donations increase. Padraig's journalistic talent is also put to good use trying to find out what Brian is up to. He's buying land from Eamonn, but he also wants two access roads and he's not saying why. The 'sweat' on the statue is finally identified as chip fat, and Peter gives Liam and Donal an angry lecture on the evils of exploiting the church for their own gain. Ambrose's mother is sent home on the advice of Dr Ryan, but Niamh gives birth in the car on the way back, with Ambrose d

Brian's latest business venture to attract Korean investors involves bulldozing a local beauty spot. It's not something the locals are going to allow without a fight and they stage a protest on the site. Peter initially refuses to take sides in the protest, but Assumpta accuses him of sitting on the fence. He eventually realises that she is right - not only about Brian's plans but also about hiding his feelings. Assumpta and Peter are left alone on the site one night, and it leads to Peter finally hinting at his feelings for her. But later, he tells her he's still a priest - he's going on retreat and Assumpta makes a major decision. Donal and his girlfriend, Sue Ellen, inspire a romantic streak in Eamonn, who sets his sights on Kathleen. She's not an easy target, but he's groomed and rehearsed by Sue Ellen before he goes to talk to her. Niamh persuades her father to leave the beauty spot alone.

With Assumpta on a break in London, Niamh is left to look after the pub, but the new baby is taking it's toll her and she agrees to let Ambrose's mother Imelda help her. Brian is still trying to bring Korean business to BallyK, but it involves the assistance of the whole community, which could be a problem. Brendan is concerned that the children will be exploited. The Koreans are impressed, but despite his best efforts Brian loses the deal. All his finances were tied up in the deal and he now faces bankruptcy. Despite the collapse of the deal, the 1950s party in Padraig's ballroom is a great success.

Brian is depressed but not defeated after the loss of a major investment. The bank has repossessed his house and car, and when he learns that Ambrose's mother has quite a bit of money tucked away his attitude towards her changes completely. While Niamh doubts his interest in her will come to anything, Ambrose is convinced that marriage could be on the horizon. Imelda refuses to let Brian have all her money, but does help him out with a smaller amount. Donal and Sue Ellen are also heading for marriage, but Brian's losses mean laying off Liam and Donal. The strength of their friendship is tested to the limit after Liam sees Sue Ellen two-timing Donal with a richer man. With father Peter on an enforced retreat, Father Mac decides to prove that accurate at Ballykissangel is unnecessary, but he is soon proved very wrong.

Peter returns to BallyK to discover a pair of scantily clad young women in his house. It transpires that Brian's bankruptcy has forced him to rent out the house. There is much worse to come when Assumpta gets back to the pub with her new husband, Leo McGarvey, in tow. It's a shock for Peter, but he takes particular offence that she didn't tell him about it. Peter distracts himself by organising a pub quiz against a rival team from Cildargan. All the relationships in the village seem to have broken down while he's been away, and it needs something to bring them together. Surprisingly, Donal saves the day with his newfound interest in philosophy. It helps to restore the community spirit, but doesn't solve Peter's problems. Ambrose's investigations into a string of burglaries ends when he makes an arrest during one of Kieran's sleepless nights.

Assumpta's marriage isn't going well. Leo is finding it difficult settling in and an article written he is writing confirms Assumpta's suspicions. Peter can see there are problems but manages to keep out of it, although Leo knows there is more to Assumpta's relationship with the priest than meets the eye. Peter blames himself when Father Mac has a heart attack, and he makes up for it by helping to keep the condition a secret from the parishioners. Assumpta starts a women's group because she feels that the women in the area aren't assertive enough. Kathleen takes particular offence, but Niamh seems to have got the hang of assertiveness without too much help. She offers to lend her father money to help him out of his financial problems, but there are strings attached.

A young woman arrives in BallyK hoping to find news of her family. Kathleen and Father Mac are particularly uncomfortable around her and Padraig thinks he might be the girl's father, but his suspicions are unfounded. Parenthood is also an issue for Siobhan who finds out she is pregnant. Brendan is the father, but she won't tell him until she's worked out what she's going to do. After much contemplation she decides to keep the baby and tells Brendan. Assumpta's and Leo's marriage continues to flounder: Leo feels isolated in BallyK. Any glamour he may have envisaged in running a pub has long since disappeared and Assumpta is keeping him at arms length. She feels they missed their chance the first time around, but Leo remains adamant - he's only ever loved her. He leaves town having told Peter that trying to make his marriage work is a waste of time because Assumpta's still interested in someone else.

The town catches lottery fever after it is announced that the winner bought the Lotto ticket in Kathleen's shop. The win is worth £6 million. Nobody knows who it is and the normally calm community begin to suspect each other. Ambrose's latest mission is an undercover job in Cildargan. It's a dangerous task and Niamh's worries are entirely justified. Peter is visiting his dying mother in Manchester and Father Mac's superiors are desperate for him to find the lottery winner so that the church can benefit from the win, a suggestion which appals him. In fact, the whole town has become engulfed in greed and jealousy. It is finally revealed that the winner was a tourist. Siobhan and Brendan begin to come to terms with their new relationship.

Assumpta returns from talking to Leo in Dublin and is upset to discover that Peter's mother is dying and he is visiting her in England. Brian finally has some money and starts up his new business - paint balling weekends designed to motivate businessmen. The teams end up rampaging all over the village and one ends up being shot by Eamonn for trespassing on his land. Siobhan and Brendan's news finally becomes public when she can't treat Eamonn's sheep because it's a risk to the baby. Peter's mother has died and Dr Ryan asks Assumpta to 'phone him.

Peter returns to BallyK with a lot of things on his mind. Ambrose catches him, and most of the regulars, at Fitzgerald's after hours, and all face charges. Assumpta's pleas that it was a private party fall on deaf ears. Assumpta and Peter are double-booked to baby-sit for Kieran, and it gives Peter the opportunity to tell her how he feels. She wants to know exactly what he wants, but it is clear that he still doesn't know himself. The pub regulars are let off the hook after it is revealed that they were only drinking cans bought from Kathleen's shop. Peter and Assumpta discuss their situation again, and Peter takes time to make his decision. A disparaging remark about Assumpta, made by Father Mac, helps Peter to make up his mind. He wants Assumpta, whatever it takes. They make plans for him to leave the priesthood and work at the pub. But tragedy strikes at the pub, that night. Assumpta has been having problems with the fuse box and she is electrocuted as the lights fail again. Father

Peter says a final goodbye to Assumpta and takes off on a long walk. Ambrose eventually finds him at the statue of the Blessed Virgin where he and Assumpta once met and talked. Ambrose is angry that Peter seems to think that he is the only one who is grieving. He went to school with her, and every person in BallyK had something to do with her upbringing. He takes Peter home where Father Mac, who wants to know whether Peter will be staying with the Church, confronts him. It's not something Peter wants to think about. A journalist is trying to dig up some dirt about Assumpta, but is blocked at every turn by her friends. Peter organises a wake on the hillside, and the next day he conducts Kieran's christening. Afterwards, he leaves the town without saying goodbye to anyone but Brendan. He takes one look back at the village and leaves in much the same way that he arrived.