Grace and her friends of the Famous Five have started school again and it proves to be an eventful year. The arrival of new girl Crishell may or may not present a threat to their tight-knit group, until Grace learns about Crishell's unhappy hope life. Then Aimee and her family move away before Christmas, leaving a hole in the group. Also keeping the gang busy are rehearsals for the class play "Waking Beauty." Finally Grace's elderly neighbor dies of pneumonia and Grace's mother announces that her boyfriend Vince has proposed.