Solicitor Barrow discusses Sarah's childhood with Headmistress Minchin; Sarah is acclimating herself to London after a long voyage from India with her father, Captain Ralph Crewe.

Sara spends time with her father before he returns to India; the other students speculate about Sara; the Headmistress believes that Sara is a spoiled, problem child.

Sara has her first day of school and gets to know her classmates; in the first French lesson there was a misunderstanding because Miss Minchin did not know that Sara could already speak the language - her mother was French.

Sara befriends the clumsy Ermengarde who is teased by everyone; Ermengarde wants to take Sara with her to her aunt's birthday.

Little Lottie worries everyone because she is always sad and crying; when Lottie runs away, Sara looks for her and finally finds out what she's suffering from.

The boarding school's new kitchen assistant, Becky, is not well received; Sara stands up for Becky when she makes a mess and Miss Minchin gets very angry.