Anne invites Diana to tea but accidentally confuses raspberry cordial with Marilla’s fermented currant wine. Diana gets drunk, which angers Mrs. Barry so much that she forbids any contact between the girls. Despite Anne’s dramatic apology, Mrs. Barry remains unyielding, and the friends must bid each other an emotional farewell.

While Anne tries to distract herself at school, the situation escalates when Diana’s sister Minnie May falls ill with croup. Anne acts sensibly, uses her experience from childcare, and saves the girl with home remedies until the doctor arrives. This convinces Mrs. Barry of Anne’s sincerity, and she lifts the ban.

In parallel, Anne’s academic ambition shows in her rivalry with Gilbert Blythe, but the reconciliation with Diana takes center stage. The episode ends with the girls’ renewed friendship, celebrating their bond with poetic vows.