Nick, Noah and Grace are walking home from school. When Noah takes off, it gives Nick and Grace a chance to talk, and Grace learns that Nick has been thinking about breaking up with Courtney. Grace is surprised that Nick hasn’t actually brought his feelings up with Courtney and she encourages him to be honest with his girlfriend.
As the town's annual lantern festival nears, Trace and each of the O'Briens attempt to put their own challenges aside so four generations of O'Briens can come together for the lantern festival.
To raise money for new school supplies, Elizabeth and the kids throw a carnival; Abigail finalizes a deal to bring the railroad to Hope Valley and new families flock to the town with the promise of work.
Elizabeth takes Opal in while her parents are away; a newcomer to Hope Valley has some insight into Carson Shepherd's mysterious past; an unlikely turn of events puts Cody in harm's way.