Gus Pike is working hard at school and taking odd jobs around town when Captain Ezekiel Crane, the reclusive lighthouse keeper, offers him a job and a place to stay. Rachel Lynde is convinced that the island is being over run by bootleggers. The children believe they see a Ghost Ship near the lighthouse. Abe Pike, former first mate for Captain Crane, arrives in Avonlea, having escaped from prison and claims Gus as his son. Abe fights with Ezekiel and falls into the ocean, as the towns people storm the light house looking for bootleggers.