Jo's husband, Friedrich Bhaer, has died, and everyone expects Jo to close the school. When she hires sailor Nick Riley as caretaker for the grounds, things begin to change.
Dan is overjoyed but Nat is skeptical when a young "old friend" from Boston appears at Plumfield with talk of going west for high adventures. Jo struggles as students are withdrawn from Plumfield for lack of an experienced teacher.
When Nat finds a poor black family camping in the school woods, Jo takes them into the house while trying to find employment for them, but unexpectedly discovers that prejudice can take many forms.
Nic and the boys go to get a Christmas tree but bring back a severely beaten woman. Preparations for an annual Christmas pageant are further complicated by emotional issues of some facing a first Christmas without cherished loved ones.
A gift of two hundred books to Plumfield School prompts Franz to assign a project on philanthropy which the students turn into a competition. But Jo's horse Penny falling ill with pleurisy results in the demonstration of spontaneous philanthropy and the value of reading.
Self-delusion strikes Laurie, who doesn't see that his recent infatuation with poker is disrupting his relationships with his family, and Anthea, who doesn't see her papers plagiarize Nat's abilities.
Asia's father who's a vagrant whom she hasn't seen in years comes to town. He tries to reconcile with her but she doesn't want anything to do with him. Jo invites him to dinner and he says he'll be there, but doesn't show up.
Nat asks Nick to enter a father-son ski tournament with him, so Jo must teach Nick how to ski. Laurie offers to be Dan's father for the day, which gives Nan an interesting idea.