Kathleen's husband, who was thought to have perished eight years ago, returns to make amends with Kathleen and Michael for his deceit.

Matt is blinded in a mining explosion and is aided by Kathleen and the family as he struggles to regain his sight. Meanwhile, Colin reveals a dark secret from his childhood.

Danni falls in love with a stranger who arrives in Paterson's Ridge. His presence seems to have an encouraging effect on all the romances in town but his gift to make others happy masks his own unhappiness.

Montana is charged with the murder of Sam Taylor's father and scheduled to be extradited to America. But Matt and Kathleen get her a hearing in Paterson's Ridge with Matt as her defender.

When Matt and his family visit Melbourne, they become embroiled in a political plot between English and Russian royalty.

Emily is still ill from drinking water from the river and it turns out someone has built a dam. Matt makes the decision to get rid of the dam by using dynamite, but one person is killed in the explosion.

Josh is found in the woods but refuses to talk to anyone. Two graves are found, of his parents, so Emily and Colin take him in. But then people come to take Josh away - will he talk and tell the truth in time to stay?

Montana and Rob find an American surveyer who has been shot. They help him and he reveals he was shot by a man spying on Montana. When Montana claims that she has seen someone loitering by her property and her horses are poisoned, Rob is determined to protect the woman he has more than neighbourly feelings for.

A fair is held in aid of church funds and members of Patterson Ridge all make donations. When a hand-written love poem is found in a second hand book, gossip around town is rife as everyone tries to work out who wrote the poem.

Mr Gleeson and Kathleen travel to Mansfield to collect an old friend who has travelled from England to visit him. When their carriage skids down an embankment, they find themselves stranded and injured in the bush.

Macalister tries to persuade his wife to return by destroying the economy of Paterson's Ridge, but Matt finds a weak spot in his plans.

Kathleen has arranged to buy a new printing press from a wheeler-and-dealer in Blaine's Ravine, who tries to cheat her on the deal. Robbie and Michael outwit him. Montana Hale arrives in Patterson's Creek, complete with riding boots with spurs, American saddle, and Winchester rifle. Kathleen and Matt set a wedding date.

Matt is held responsible by an angry landowner when the government decides to take his land to dam the valley.

Matt and Kathleen's wedding day is marked, and could be marred, by a woman who appears at the church and wants to buy a horse from Matt. Matt finds a riderless horse and goes off to investigate, without telling anyone.

McGregor takes a stand between an aboriginal man who is accused of the murder of a teenager, and the victim's father and two brothers who want revenge.

Danni and her father Matt argue after he tells her he wants her to go to a ladies finishing school. Objecting, Danni runs away to the cabin and spends the night, only telling Michael where she was going.

A friend of Emily's arrives in Paterson's Ridge with her newborn child in search of a fresh start but her abusive husband soon follows to take her with him.

Montana's new horse is stolen by rustler Seb Holgate after she bests him in a shooting competition. Montana sets out after him and is joined by Kathleen.

During Paterson Ridge's charity sale, a book belonging to Mr. Elliott is accidentally sold. Kathleen finds - and publishes - a love poem that falls from the book but who is the lady of Herbert's dreams?

When Matt allows visiting soldiers to camp on his land, Michael and Josh get swept up in the romanticism of the military - and Josh sets his sights on carrying a gun.

Danni McGregor secretly enters the electrifying and dangerous Snowy River cross-country race — an annual race created in honour of her father's famous ride years before. Then, a mysterious American appears, determined not only to win the race at any cost, but also to challenge Matt McGregor himself in the original death-filled ride down the mountainside.

Matt suggests to Jack Kelly that he work for Kathleen in exchange for food and board. Reluctantly, he agrees to do so. Jack and Kathleen argue from the start, but obviously need one another. Oliver Blackwood continues his efforts in trying to undermine Kathleen's hold on her land. Rob and Luke court danger to win Victoria's affections, chasing down a wild stallion. Matt must intervene when Danni is severely punished by the new teacher.

Matt McGregor finds he has a competitor for Kathleen's affections when his mate, Steve Page, arrives at Paterson's Ridge and becomes smitten with the fiery Kathleen. Kathleen's new Braham breaks loose, and she gets caught in the middle of a sudden storm looking for it. When she hasn't arrived back by nightfall, Matt rides off in search of her. Meawnile, Luke starts prospecting for gold on his father's old claim.

Victoria Blackwood and her chaperone return from shopping in Melbourne, but their train journey ends when the tracks are washed away in heavy rain. Rob is sent to collect them and shares a passionate kiss with Victoria. Matt and Kathleen have a disagreement about Sean Carney's education and Emily donates a new organ to Colin's church.

Matt's old flame Anita Hargreaves returns to town after 25 years away just as her father suffers a heart attack. Matt is dumbfounded by her hospitality towards him — and Kathleen's coldness. A bitter Anita forcloses on Matt's loan, only to learn that she had not been jilted by Matt years ago, but tricked by her father. Luke strikes gold.