Itse has fallen for Remziye, a young Roma girl new to the neighborhood. In an attempt to impress Remziye, Itse tries to learn a Roma dance. However, his plans backfire when Mali and Darko bring Remziye to watch him practicing in his dance tights. Remziye thinks that Itse is making a fool of her and Itse is embarrassed. Meanwhile, Mali has suggested to Beni that he enter an amateur film competition. At first Beni is reluctant, but when he secretly films the embarrassed Itse in his dance tights chasing Mali and Darko, Beni decides that Itse's passion for Remziye is a good subject for his film. Itse tries several things to impress Remziye, but she always feels that he is mocking her and only becomes angrier when she discovers Beni and Mali secretly filming their encounters. Remziye's best friend Elvira tells her that all Macedonians are the same, and that all Itse wants to do is to make fun of her. Itse is confused, so Karmen "threshes" (magically transports) him to a situation where he sees that his best choice is simply to be himself - not to try to be someone he imagines Remziye would like him to be. To help Itse, Beni gives Remziye the film he has made; and after seeing the tape, Remziye realizes that Itse wasn't teasing her, rather trying to impress her. The next time they meet Itse is back to his old self and he finds that Remziye is interested in the real him.
The kids are entering the "Cleanest Neighbourhood Competition." As they finish cleaning, they find an ugly puddle of oil on the ground. Ismail (Jeylan's father) accuses Risto and Ahmed of spilling the oil, and Risto and Ahmed call Ismail a litterlout. In their anger, the adults start throwing bags of garbage into the yard the kids have been trying to clean. Now they have no chance of winning the competition. The kids try to hide the garbage, but the judges find it. The kids go looking for Karmen, but disgusted by the rubbish, she's gone away to Mt. Vodno. When they keep bickering, she threshes them to the future where they see how polluted the world will be if people don't take any action. Returning from Mt. Vodno, the kids decide to clean up the mess together. Shamed by their children all the adults join in.
In order to earn enough money to buy a motor scooter Beni and Itse work at the new "Nashe Maalo Car Wash," owned by Beni's and Mali's families. Beni explains to Itse that for him working at the car wash isn't just about buying the scooter; all Albanian boys are expected to get some kind of work at his age as a sign of growing up. One day, a red convertible drives into the car wash. Beni and Itse are so impressed; they fail to serve the customer. Ahmed scolds Beni for not taking his responsibilities seriously and letting the family down. Beni apologizes and asks for a chance to prove himself, so Ahmed puts Beni in charge one afternoon. The same convertible comes in and Beni takes Itse and Sanya for a ride in it. He crashes the car and injures Sanya's leg. Beni and Itse give their "scooter money" to the red car owner to pay for the repair, but Beni's father remains disappointed in his son's behavior. Beni vows to never make such a mistake again.
Mali meets a new boy in the neighborhood, and nicknames him "Gjubredjiya" (garbage guy). A new girl, Marina, moves into one of the flats with her father, Petar. Gjubredjiya is smitten and thinks she is a princess. In the playground Gjubredjiya, Mali and Beni try to introduce themselves, but Petar abruptly takes Marina indoors. Karmen threshes Mali to a scene between Marina and her father. There he learns that he's too quick to judge Petar's behavior. When Petar is away, Marina hesitantly goes out with Gjubredjiya. Banging her nose, she bleeds profusely because she has a rare bleeding disorder and she has left the drugs for it at home. When Petar realizes that Marina is out without her medicine, he turns to the kids for help. They find Marina and Gjubredjiya at the hospital. Petar recognizes his attempts to protect Marina have actually made her life more difficult. He has to trust her and her ability to cope, so he gives Marina permission to go out with Gjubredjiya.
Itse's dog has puppies and he gives one to Mali. But Mali has no place to keep it and when his attempts to find a place fail, he schemes up a plan. Without asking, he gives Jeylan the puppy, thinking that she'll look after it. Although Jeylan doesn't want the puppy, Remziye convinces her to take the dog for a walk in the city park. In the park the puppy runs away! Jeylan begins to look for it but decides this is a good way of ridding herself of the unwanted animal and goes home instead. Mali keeps asking to see the puppy and Jeylan keeps making up excuses for the puppy's absence. Karmen "threshes" Jeylan to the park as a puppy. Falling into a hole, "puppy Jeylan" waits in fear till she's rescued. Jeylan realizes that she's been cruel to the dog and goes looking for him. On his own, the missing puppy returns to Itse's house. Itse and Jeylan tell Mali that he was wrong to accept the dog without his parent's permission and then to give it to Jeylan without checking with her first. Jeylan admits that she also mishandled the puppy. Mali gives the dog to a little girl whose parents promise that they will look after it, and she promises Mali that he can come and visit anytime he likes.
Filis sees Elvis, a young Roma boy, fall and twist his ankle. After she takes him back to Shutka (the Roma quarter of Skopje) the two start talking and become friends. When she arrives home late, her aunt and uncle are mortified that she's been spending time with the Roma and forbid her from going to Shutka again. In the car with Ismail and Leyla, Filis encounters Elvis who's cleaning car windows, but she ignores him. Karmen "threshes" Filis into a Roma street girl trying to clean the window of a car Elvis is in. Filis sees Elvis in the car and she waves at him, but he ignores her. Filis now realizes how hurt Elvis must have been when she had ignored him. Later, Filis asks Remziye, her Roma girlfriend, to convey her regrets to Elvis. Despite his hurt pride Elvis accepts the apology from his new friend. The following day, Elvis's horse falls lame, so Filis helps him take the horse for help. When Filis doesn't come home, her worried uncle drives to Elvis's home and finds that Elvis's parents are as worried about him as he is about Filis. When Filis and Elvis eventually arrive everyone is relieved to see them. Seeing that Elvis and his parents are a family like any other, Filis' uncle promises personally to bring Filis back to visit.
At school, Darko shares a story he wrote about "Captain Darko". Although his classmates laugh at him, his teacher is impressed and she says that imagination is important. Darko is nevertheless dismayed. He is shocked when Karmen suddenly appears on his computer and introduces herself. He rushes out to tell everyone, but the children mock Darko yet again, he decides to abandon his space stories. Seeing that Darko is upset an old neighborhood women sympathizes with him by inviting him to tea, but Darko is too depressed for tea. In the common room, Mali finds Darko's notebook and starts to read aloud one of Darko's stories. The kids realize that his writing is rather good. Karmen "threshes" Darko, Mali, Beni and Itse to an alien planet created in Darko's imagination. They are deeply impressed. Encouraged, Darko writes more stories and visits the old neighbor woman. He reads her some of his stories and they discuss what Darko would like to do in the future - go back in time perhaps to see the dinosaurs, or travel beyond the galaxy....
Mysterious things start to happen in the building after Risto (Mali's father) and Leyla (Jeylan's mother) have an argument over who has the right to store their food in the common room. Although they both agree that the original caretaker of the building had said they could all use the room, each tries to lock the other out. Karmen begins to tell Filis, who witnessed the argument, the story of the original caretaker who lived in the common room; how his wife and son died in the 1963 earthquake; how he was made homeless; and how he made the common room his new home. Each year he would host a zadushnitsa banquet on All Souls Day to remember those who had died. That tradition had continued to the present. During the banquet preparations lights go on and off, strange messages and signs appear on the wall, things disappear then suddenly re-appear. Everyone is very nervous. Mali is convinced that the ghost of the caretaker has returned, angry that Risto and Leyla are arguing over his old room. They decide that it is time that Risto and Leyla were taught a lesson. The kids invite Risto and Leyla, who are frightened, to zadushnitsa. There they are met by a mysterious ghostly figure. Suddenly the ghost reveals itself as Filis. As dawn breaks we see the ghost of the caretaker. He raises his glass to the souls of the dead, "za dusha!" and then disappears into the sleeping building.