Pixley's Sheriff Crandall is going on a fishing vacation. Uncle Joe makes an arrangement with Sam, the valley's justice of the peace, to house kleptomaniac shoplifter Eustace Pockle at the hotel. Kate doesn't like the idea, but allows Eustace to stay. Unfortunately for Kate and the hotel guests, Uncle Joe treats the hotel more like a jail than a hotel. Kate and the girls treat Eustace more like a hotel guest than a prisoner. Eustace, on the other hand, treats the hotel like any other place: somewhere to snatch trinkets. Just as Sheriff Crandall announces his early return to pick-up Eustace, Eustace escapes from the Shady Rest. They hope to be able to find him before Sheriff Crandall makes it back.

Life at the Shady Rest is going well despite Kate's absence. The girls and Uncle Joe receive a letter from Cousin Mae who is planning on coming by to take charge. Cousin Mae's meddling quickly wreaks havoc for everyone. This includes the hotel's relationship with Drucker's Store, Steve and Betty Jo's remodeling plan for the cottage, Bobbie Jo's love life with Jeff and Billie Jo's singing career. Fortunately, sane and stable Aunt Helen arrives. As Helen too ends up a victim of Mae's meddling, she comes up with a plan to convince Mae that her time at the Shady Rest is at its end.

Betty Jo finds herself growing jealous of the attention Steve is giving to their daughter, so the pair go on a second honeymoon together, at their old cottage. But the couple's romantic mood is spoiled by a lack of electricity, Mr. Haney's intrusive realty service, and a bunch of hobos.

Baby Kathy Jo almost misses her ffirst birthday party when she lands in jail with Uncle Joe.