Anne leaves Green Gables and her work as a teacher in Avonlea to pursue her original dream (which she gave up in Anne of Green Gables) of taking further education at Redmond College in Nova Scotia. Gilbert Blythe and Charlie Sloane enroll as well, as do Anne's friends from Queen's Academy, Priscilla Grant and Stella Maynard. During her first week of school, Anne befriends Philippa Gordon (Phil for short), a beautiful girl whose frivolous ways charm her. Phil also happens to be from Anne's birthplace of Bolingbroke, Nova Scotia.
The girls spend their first year in boardinghouses and decide to set up house thereafter in a lovely cottage called Patty's Place, near campus. The girls enter their second year at Redmond happily ensconced at Patty's Place, while life continues in Avonlea. Diana Barry becomes engaged, and Davy and Dora continue to keep Marilla busy.
Midway through their college years, Gilbert, who has always loved Anne, proposes to her but Anne has other ideas.