The Christmas holiday is approaching and the members of the Ingalls family go about their holiday shopping in secrecy. Laura is able to buy her mom a stove that she wanted after she sells her horse to Mr. Oleson.

After the mill closes, Charles is unable to pay off his debt at the mercantile. Mr. Hanson is forced to close the mill after one of his big customers declares bankruptcy. This was after Hanson had already shipped them a bunch of lumber. Charles had been expecting two months worth of wages before Hanson was forced to close down. Charles must taken on several jobs at the same time. Mary gets a job to help the family, while Laura does the chores at home. When the bill finally gets paid, Nels tells Charles that he thinks Charles is the richest man in Walnut Grove, since he has a very loving family.

The son of Mrs. Whipple returns to Walnut Grove after serving in the Civil War. To forget his painful past, he takes morphine, which he becomes addicted to.

Reverend Alden gets sick while collecting donations. Caleb Hodgekiss, an ex-convict, helps the Reverend by giving him a place to stay and volunteering to get the donations from Walnut Grove. Caleb poses as a friend of the Reverend so that he might get donations which he initially planned to keep for himself.

When Doc Baker is unable to save a patient of his, he believes that he is unhappy being a doctor. He finds a new doctor for the town. Doc Baker stays on when he realizes that the new doctor really doesn't care about his patients.