Carrie, having tagged along on Laura and Mary's classroom assignment, falls down a mine shaft, providing an alcoholic ex-miner a chance at redemption.

The day before Christmas vacation started, Miss Beadle lets the children out early when she notices that a snowstorm is beginning. The children aren't able to make it home before the storm starts. The men of Walnut Grove search for the children while Doc Baker takes care of the frostbitten children that show up at the school.

While Mr. Edwards, Charles, and James are in Sleepy Eye, James gets shot during a bank robbery. James, who is in a coma, is taken to the hospital. While James is in the hospital, Mr. Edwards, Mr. Ingalls, and Albert look for the bank robbers. They find them and bring them to justice. Charles continues to believe that James will get better.

Harriet finds a bearer bond from Walnut Grove. She uses this to try to get people to follow her suggestions. She tells the town council that if she doesn't get her way, she will cash in the bond which would force the town to pay Mrs. Oleson over $10,000.

Laura's childhood friend, Jane Canfield, comes back to Walnut Grove. Although she is blind, she falls in love with Mr. Edwards, a person who was old enough to be her father. Jane then undergoes an operation which allows her to see again. After a lot of soul searching, Mr. Edwards tells Jane that she should go out and find herself a better life. At the end of the show, we see Mr. Edwards in the distance watching Jane leave on the stagecoach.