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.

Emily discovers the ""Disappointed House"" which looks out over the seashore. She also gets a surprise when Teddy kisses her.

A carpenter was building it for his wife-to-be when she called off the wedding days before it was set to take place. Both now dead, Emily must help the ghosts to see the truth so that they can finally be together.

In the process revealing one of Aunt Laura's secrets. Emily also meets Perry Miller, who becomes the new New Moon chore boy.

Young Duncan McHugh blames himself for his mother's poverty and depression. After an embarrassing incident at school, Emily befriends Duncan and brings him to New Moon.

But when Aunt Elizabeth finds out who he is she sends him packing. His mother Alma and Aunt Elizabeth had both been in love with the same man, but he married Alma.

Emily, Ilse, Perry and Teddy also defy an order not to go into town to watch the hanging of a murderer.

Miss Brownell leaves her post as teacher and marries the school inspector.

Her replacement is Mr Carpenter, a once university professor. He encourages the children to find their own talents, the only problem is that he drinks.

Emily, Perry, Cousin Jimmy and Aunt Laura have to get Mr Carpenter cleaned up for his final evaluation after he staggers to New Moon drunk.

Aunt Elizabeth find Emily's treasured 'Letter Bills' hidden in the attic. Laura announces her engagement to the rest of New Moon.