School starts for Anne, but it begins less smoothly than Marilla had hoped. The walk to school is fun for Anne because she is accompanied by her new best friend, Diana. They take the long way to school and make up new names for every path and dip in the fields. Again Anne thinks the names she conceives are much more imaginative than Diana’s are, but this does not diminish her liking of the young girl. On their way to school, Diana offers advice to Anne about the other students and their teacher. She also tells Anne to make sure she studies as hard as she can.

After a few days in class it becomes obvious to the other students that Anne is very intelligent, but there is a boy in their class who could take the title of smartest student. His name is Gilbert Blythe, and most of the other girls find him very handsome. Even at this young age, many of the girls flirt with Gilbert and hope to win his affection. Anne does not. She admits he is cute and smart, but she wants nothing to do with him or any of the other boys.

One day Gilbert, who seems attracted to Anne in spite of her aloofness toward him or maybe because of it, makes the mistake of tugging on one of Anne’s bright red braids and calling her “carrot.” Until that moment, Anne had controlled her temper in class, but Gilbert’s remark is too much for her to handle. This remark is personal and hits one of Anne’s tender spots. Upon hearing the name, Anne stands and walks over to Gilbert. She is holding her writing slate in her hands; she raises it and breaks it over Gilbert’s head.

Anne’s teacher, Mr. Phillips, has previously shown absolutely no favor toward Anne, and now as punishment he commands Anne to spend the rest of the day standing in front of the class. There is very little appreciation shared between Anne and her teacher. Anne has criticized Mr. Phillips for spending most of his time with an older female student who is studying to go to teacher college. Mr. Phillips has a crush on this young girl and gives her special attention at the expense of the remaining students.

When Anne returns to school the next day, she and a group of boys are late coming into the classroom. Instead of punishing all of them for their tardiness, Mr. Phillips singles out Anne to admonish. He then insists, for further punishment, that Anne sit next to Gilbert rather than share her desk with a girl per the usual arrangement. This infuriates Anne, who refuses to go back to school the next day. Marilla, who is not as well trained in raising children, seeks Mrs. Lynde’s advice. Mrs. Lynde, the mother of several grown children, suggests that Marilla give in to Anne’s needs and allow her to stay home until Anne feels more comfortable about returning to school.