Anne of Avonlea is a story about Anne Shirley, who is now a schoolteacher and has started writing stories but is facing rejection slips. She meets a handsome, rich bachelor and mistakenly chases down Rachel Lynde's cow, thinking it was Dolly. She sells the cow to John Blythe but later realizes her mistake and visits Rachel Lynde and her husband, Thomas, who tragically dies during their visit.
Anne wins a baking soda company's writing contest, which was actually forged by her friend Diana. She acts as Diana's maid of honor and rejects Gilbert Blythe's marriage proposal. This leads her to teach at Kingsport Ladies' College, where she faces opposition from the principal, Miss Katherine Brooke, and the Pringle clan.
Despite the conflicts and battles she faces, Anne makes friends and eventually returns to Avonlea after winning numerous challenges.