Charles must try to save his business from a competitor. Laura, who is love with Jimmy Hill, must compete with somebody else for him.

It's time for baseball! After losing badly last year, Walnut Grove expects to win with their star pitcher, Mr. Mumford. People in Walnut Grove are so confident that they are going to win, they place bets on the game. However, Mr. Mumford's wife won't let her husband play because of the gambling. Caroline convinces Mr. Mumford's wife to let her husband play on the condition that any money made from the game goes to the church.

The Ingalls settle on the banks of Plum Creek in Walnut Grove. To get the farm set up, Charles must take on several jobs at once. He promises one person that if he didn't get the job done in the specified time, the person could have his oxen.

Laura and Mary start school for the first time. That is where they meet Nellie Oleson. Since Laura hasn't been to school before, she tries especially hard with her schoolwork. The students have to write an essay to present in front of the class. Laura recites what she would have written on the paper if she could have, instead of what was actually written on it.

Laura connects with a sweet, shy classmate named Olga Nordstrom, who happens to have been born with a short leg. Charles has an idea that can change Olga’s entire life, but the challenge will be convincing the child’s stubborn widowed father.

Believing that her jealousy was responsible for her infant brother's death and that her parents would rather have a son than a spare daughter, Laura climbs the highest hill she can find, hoping to get as close to God as possible to ask Him to take her instead and return the baby boy to the family. While Charles and Mr. Edwards desperately search for her, Laura meets Jonathan, a mystical mountain man who seems to have been sent purposely to guide her through this life-changing experience.

The Christmas holiday is approaching and the members of the Ingalls family go about their holiday shopping in secrecy. Laura is able to buy her mom a stove that she wanted after she sells her horse to Mr. Oleson.

Several people in Walnut Grove get very sick. A quarantine is set up in the church while the source of the illness is being sought.

After Ms. Beadle sprains her ankle, Caroline becomes the substitute teacher. Caroline takes a special interest in helping an older student, Abel, learn to read. One day Mrs. Oleson shows up and causes Abel to quit school. Because of this Caroline quits, but returns after she convinces Abel to give school another chance.

Caroline becomes pregnant. Shortly after the baby is born, he becomes ill.

In the beginning, things look very good for the Ingalls until a bad hailstorm ruins their crops. Charles and some other farmers must leave to look for work. They end up working in a quarry. While Charles is away, Caroline is able to get the women of Walnut Grove to join together to harvest the remaining crops.

While Charles is in Mankato, he runs into Mr. Edwards and invites him to come to Walnut Grove. Caroline tries to match Mr. Edwards up with Grace Snider, but instead she just ends up in the way since Mr. Edwards is able to charm Grace all by himself. Although there are a couple problems that must be overcome, things turn out for the best in the end.

When Albert continually breaks the law, Charles takes him out of the big city and back to Walnut Grove. Albert doesn't change in Walnut Grove because he is addicted to morphine. Charles finally forces Albert to stop using morphine. He stays with Albert while he goes through withdrawal. Thanks to Charles, Albert is no longer addicted to morphine. We find out at the end of the show that Albert will become Dr. Albert Ingalls.

No longer a mama's boy, Willie announces his engagement and plans to marry his sweetheart. All this upsets his mother greatly, who makes several attempts to get her way.

The town becomes divided when Mrs. Oleson offers to buy a bell for the church, but only if she can put up a plaque. The differences and arguing begin to affect the school children. A mute craftsman, Tinker Jones, steps in and with the help of the school children, is able to make a bell.

While studying for an optional history exam in the barn, Mary accidentally knocks over a reading lamp and starts a fire. Caroline punishes Mary by telling her she couldn't take the exam. Mary doesn't tell Ms. Beadle this until the day of the exam.

When it is found out that a young boy, Graham, is being beaten by his alcoholic father, John, Caroline takes care of the boy while Charles stays with John to try to get him to stay sober.

The Ingallses have to seek shelter when a blizzard hits. There they meet an Indian who helps them out. A marshall, looking for the Indian, comes by...

Charles beings making tables so that he could pass on a legacy. While he is at this, Albert begins taking care of the farm. Charles gets very upset when someone steals his design and starts producing the tables in large quantities. Charles soon realizes that memories of his family is a lot more important.

Charles allows Laura to adopt a baby raccoon, Jasper. After being caged, the raccoon bites Laura and Jack and runs away. The family fears that Laura and Jack might have rabies until a healthy Jasper returns.

Mrs. Oleson changes the restaurant into a franchise restaurant, She has a hard time living up to the agreement of the franchise. Charles and Nels get together and decide to open up a restaurant of their own, right across the street. The new restaurant forces Mrs. Oleson's restaurant out of business. The town is now back to normal, or at least as normal as it can be.

Mary, Adam, Hester Sue, the Wilders, and the Ingalls are all together for Christmas. The snow begins falling and soon they are snowed in by a blizzard. To pass time, several of them tell stories. Laura talks about the Christmas in Kansas when Mr. Edwards came.

When Albert continually breaks the law, Charles takes him out of the big city and back to Walnut Grove. Albert doesn't change in Walnut Grove because he is addicted to morphine. Charles finally forces Albert to stop using morphine. He stays with Albert while he goes through withdrawal. Thanks to Charles, Albert is no longer addicted to morphine. We find out at the end of the show that Albert will become Dr. Albert Ingalls.

Charles and Caroline decide to go on a second honeymoon and leave Mr. Edwards in charge of the children. The honeymoon doesn't turn out very well because Caroline keeps worrying about the children. Back at home, Mr. Edwards has his hands full with Carrie.

Walnut Grove celebrates this great day with several different competitions. There are very competitive spirits between the Olesons and the Ingallses.