After Matthew persuades her, Marilla gives Anne permission to spend the night at Diana’s house. Diana’s family is expecting several other guests, including an old aunt named Josephine.

Before Aunt Josephine arrives, the family attends a concert and a debate at the local hall. Gilbert has the task of doing a reading, which Anne is so determined to ignore that she opens a books she has brought with her and reads it all through Gilbert’s recitation. Anne has still not forgiven Gilbert for calling her “carrot,” and she promises that she never will. Afterward, Diana informs Anne that Gilbert stared at Anne throughout his performance.

It is late when the family arrives home. Diana’s mother sends the girls off to bed without personally escorting them to the guest room. She has promised that they can use this special room for the night. Aunt Josephine is expected in the morning, and she will then take over that room. However, for now, the room belongs to Anne and Diana.

The girls are so excited at the prospect of having a slumber party in the guest bedroom that they run into the room, and together they jump on the bed. Having not turned on the light, they are surprised to find that someone is sleeping in the bed. This scares them so much that they jump off the bed quicker than they had jumped on and then run out of the room.

At the breakfast table the next morning, Diana’s mother asks the girls about their night. She then apologizes for not informing them the night before that Aunt Josephine arrived early. When Diana’s mother says she hopes the girls will be very respectful toward Aunt Josephine, Anne sheepishly looks at Diana, and both girls try to hide their giggles. After breakfast, Anne does not waste any time leaving for home. Later that day, Anne learns from Mrs. Lynde that Aunt Josephine is very upset. She was almost frightened to death by the girls descending on her in the middle of her sleep. She is so angry that she has rescinded her offer to pay for Diana’s music lessons and refuses to stay in Avonlea for even one more night.

Anne goes to find Diana to see how her friend is taking the news. Diana is not very disturbed. In fact, she is rather happy that her old aunt is leaving. However, Diana is a little disappointed that she will not be able to study music. Because Anne feels responsible for Diana’s punishment, she insists on talking to Aunt Josephine. Anne confesses to the woman that the silly stunt of jumping on the bed was her idea; if Aunt Josephine is going to punish anyone, it should be her because she is used to having a hard life. The more Aunt Josephine listens to Anne, the more endeared she feels toward the young girl. By the end of Anne’s conversation with the older woman, Anne feels that the two of them are kindred spirits.