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.

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.