Marilla asks Anne if she has seen her amethyst brooch, which Marilla wore to church the previous Sunday. Anne had made several remarks about the pin, and Marilla thought maybe she had played with it. Anne admits that she had seen the brooch earlier in the day when Marilla went out shopping. The pin had been on the top of Marilla’s dresser, and Anne had gone into the Marilla’s bedroom to take a closer look at it. Marilla wants to know if Anne touched it. Anne confesses that she even pinned it to her dress to see what it would look like on her. This angers Marilla, who tells the girl she has no right to mess around with things that do not belong to her. Then Marilla asks where Anne put the brooch. Anne tells her that she put it back where she found it. She did not know it was wrong to try it on, but she will never do it again.

Marilla, however, is not in a very good mood. She accuses Anne of mislaying the pin. The brooch is not where Marilla left it. She has looked everywhere and cannot find the brooch. Because Anne was the last one to see it, Anne must be the culprit. Marilla insists that Anne tell her what she did with it. Anne continues to claim that she is innocent. She admits touching the pin, but she did not take it out of Marilla’s room.

Marilla tells Anne to go to her room until she is willing to confess. When she is alone, Marilla realizes that Anne might have taken the pin in all innocence. She might have lost it and is now afraid to tell her the truth. But it is shameful that she might not be able to trust Anne any more.

When Marilla discusses the situation with Matthew, he tries hard not to lose faith in Anne. However, he realizes that the circumstantial evidence does not bode well for the young girl. Marilla continues to insist that Anne will be confined to her room until she confesses.

Later, Marilla visits Anne in her room and is disappointed when the child refuses to admit she has lied. When Marilla reminds Anne that she cannot leave her room, Anne realizes this might mean she will miss the picnic. She cannot believe Marilla would do that. She begs Marilla to at least allow her out for the affair, but Marilla will not give in. Anne will definitely not be going to the picnic or anywhere else until she tells Marilla what she has done with the brooch.

In desperation, Anne confesses. She tells Marilla that she took the pin outside to play with it but lost it in the creek. Since she has confessed, Anne expects Marilla to forgive her and allow her to attend the picnic. But Marilla thinks Anne needs to be punished. She will not be going to the picnic.

Later that day, when Marilla sits down to mend a hole in her shawl, she finds the missing brooch snagged in the material: Anne did not take it. She also now knows that Anne made up the story of how she lost the pin. When Marilla questions why Anne made a false confession, Anne explains that she thought it was the only way she would be able to go to the picnic.