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 falls in love with a new student, Johnny Johnson. Johnny, who is a lot older than Laura, is interested in Mary instead. Although Mary is not interested in Johnny, Laura's actions cause tension between the sisters. When Charles finds this out, he is appalled that either of his girls is involved with Johnny.

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.

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.

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.

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

Although many in Walnut Grove think he's a homicidal maniac who lives in a haunted house, brave Laura Ingalls befriends mysterious hermit, Amos Pike, and soon discovers the truth behind both the rumors and the old man's reclusive life.