The Devil is in Blair Water, or so says the Reverend Nicholas Pitch who has arrived in Blair Water to rid the town of him. Hysteria immediately follows as the townspeople are suspicious of everything and blame the Devil. Meanwhile, the younger townspeople start to ask questions about the Devil. Hysteria continues in what can be likened to the Salem witch trials. In all this it is Laura who become calm (the Devil has of course left her).

As Director of the First Institute of Scientific Discovery and with great plans set out in front of him, Jimmy only really wants Eve to be his wife. Aunt Isabel as always objects to the marriage but it goes ahead and the wedding is beautiful. However the happiness is short-lived when Eve is arrested for murdering her father Abner Kinch and her fate lies in the hands of Jimmy.

New Moon is on tender hooks after Aunt Isabel Murray arrives to 'take over'. Emily is horrified when Isabel tells her sher will no longer be allowed to attend school and that in place of it she will have to earn money. Next she tells Cousin Jimmy to kill one of his own cows for food and takes the household keys off Laura.

In a surprise ending for the season we watch four separate outcomes for Laura's wedding day. Each is seen in the imagination of Emily and for a change we get to see the full talents of the actors get a chance to shine. However, this episode also leaves the question, which was the real thing?

Poor Baby Ollie is again being handed about after he is left on the Murray's doorstep. Hoping to reunite Ollie with Maida Flynn, his mother, the children devise a plan. However their plans are not to be as Perry's Aunt Thom and new ‘friend' the Madame Marlena shatter the plans.

Isabel, knowing full well of Emily's plans, forbids her to enter into the ""Island Romance Contest"". Having written the story of ""Isabella of the Highland"" Emily reluctantly puts it away only for Ilse to find and submit. When it wins first prize Isabel wants Emily to renounce the award and takes both her and Aunt Laura to Charlottetown to do it. Ian Bowles makes a return to the series with a pregnant Margaux Lavoie. Laura must face the truth as the lies and deceit become too much

The series returns and we find that Laura's wedding has not yet happened and that she is fighting a battle of the heart whether to marry Ian or not. Emily is now thirteen years old. Not wanting to see Laura marry Ian, Emily and Ilse are overjoyed when the news that Laura is thinking of cancelling the wedding reaches them. Things don't got to plan however when fortune's wheel decides to turn and Laura never gets to tell Ian as New Moon battles to find answers…

Teddy falls down an embankment while playing hide and seek with Emily and Ilse. The girls try to reach him, but before they can Mad Man Morrison picks up Teddy and takes him to Dr Burnley. With this in mind, Teddy's possesive mother then plots to to convince Teddy that Emily and Mad Man Morrison are romantically involved.

Lightening is said to be able to change a person's life and so it does for Jimmy who does indeed have a change in life. After the bolt strikes him Jimmy is left in a coma, desparetly wanting Jimmy to be okay Emily wishes that he could be a ‘man of great wisdom'. When he awakens her wish has been granted, the damage which he sustained from the well accident seems to have vanished. Life changes dramatically for Jimmy as he achieves everything including world acclaim. But nothing can be compared to the joy of seeing Eve again.

When Aunt Laura's addiction to laudanum worses, Isabel takes the step of putting her in an asylum without asking anyone else. Meanwhile, New Moon is up for sale and Stuart is planning on buying it. Emily doesn't want Laura in the asylum and goes to get help via Jimmy, Dr Burnley and Uncle Malcolm.

The truth is sometimes better left on the shelf and that is what Emily learns when she tries to overcome her writer's block. Deciding to write about what she knows she sees Rhoda's mother, Velma, as the perfect subject. ""Confessions of an Adulteress"" causing more problems when Rhoda falls for Harrison Bowles who is visting New Moon, soon Rhoda is losing control of all angles of her future.

Emily begins to realise that despite how tough Aunt Elizabeth was, a part of her truly loved her and missed her now. Laura increases her intake of laudanum, then suffers inertia and stays in bed. Uncle Malcolm replies to Emily and says that he will not take the diamond she found as payment (not enough) and that they are coming to claim what is now theirs.

Ollie Murray who has been without his mother for a year is finally re-united with her. In the time which she has been gone much has changed in Blair Water, especially the death of Ollie's father, Oliver Murray Snr. who died in the Klondike. Maida sets out to prove her love for her son, but there is still the possibility that Maida is only after the gold which Oliver Snr. left his son.

Emily and Ilse write an article ""Kicking the cat"" for the newspaper. The problems begin once people start taking the advice of the column and misunderstandings in love begins. Then Mr Carpenter returns and falls in love with Isabel Murray.

Emily is feeling very insecure with her future as she begins to take the entrance exam for college hoping to get the scholarship - which Ilse and Teddy are also trying to get. On the way to exam they meet Jack and Emily pays for him to do the exam as well. Ilse tries to play matchmaker to get Jack and Emily together so she can go after Teddy.

Overjoyed at finishing her first book she goes to see Teddy to see what he thinks of it. Only he breaks her heart when he is brutally honest about it bringing back memories of Dean Priest. Emily then falls down the stairs and remembers back through a series of flashbacks the moments in her life that have shaped her future.

Ilse Burnley wants to learn about her dead mother because her father never talks about her. Emily, whose own father is dead, feels sympathy for her and wants to help find some information. While visiting her Great Aunts they tell her the tales about what has happened to Ilse's mother. After running away Emily snares her foot in a rabbit snare and is rescued by her Cousin Dean Priest (2nd cousin, twice removed).

Small pox spreads through Blair Water and Robbie Burns dies. Trying to help as many as he can, Dr Burnley turns his house into a hospital. Ilse then also falls ill.

Emily and Ilse are curous about who Lofty John exactly is and go searching on his property to find out more. After catching Emily he forces her to eat a 'poison' apple and sends her home. Despite trying her best to be brave she prays to her father who is on the road to heaven.

Family bickering at it's best abounds at New Moon when it is left to Isabel, Laura, Emily and Jimmy. Isabel, who doesn't want to share wants to get the documents confirming this nulled and does everything she can. It is Uncle Malcolm who shows a side of him when Isabel goes too far to keep New Moon and he finally realises the truth about his family.

Vacinnation is what eventuates from this episode after Malcolm is put under quarantine for small pox. As always, no one listend to Dr Burnley's advise and the children get Malcolm off the ship concealed in a coffin. However fear takes hold when they realise that Malcolm bought a boy of six, Robbie Burns with him as well whose mother died on the ship. The community won't accept Robbie, who is only six, but black and Emily's efforts to make him feel welcome fail. Vaccination begins but then Malcolm falls ill…

While her friends all head off for Shrewsbury Emily is left behind in Blair Water because her Auth Ruth refuses to have Emily stay with her. Bitterely disappointed, Laura tries to cheer her up by telling Emily that she has left Ian for good. An ally of sorts then comes to Emily's help and her future takes a turn for the good, but things aren't so good for Laura who discovers something unexpected.

Laura is still refusing to return to Ian and Emily helps her out by finding her employment at a mill. There Laura finds out just how hard the working conditions are for women in the 19th century. However, Ian finds out where she is and tries to force her to return back to his home. When Emily and Ilse find this out they go to visit her at the mill but Laura appears to have disappeared.

Emily is horrified when Aunt Elizabeth informs her that she must attend school. After a dreadful first day of being teased by the other students and meeting the mean teacher Miss Brownell, she meets Ilse Burnley and they become friends.

While searching through the attic Emily comes across her mother's, Juliet, doll. Aunt Laura restores it for Emily. Then Aunt Laura meets Ian Bowles and falls in love with him...until she finds out the truth about him which sends her back home in tears.