In June 1940, the islanders of Guernsey await the German invasion following bombing raids. Dr. Philip Martel is invited by John Ambrose on behalf of the bailiff to join a negotiating committee.

Major Richter rejects Hauptsmann Reinicke's suggestion of reprisals until Peter gives himself up, as he wants to court local goodwill.

Reinicke organizes a propaganda dance for soldiers and local girls to attract good publicity.

Aware that it was Peter who tried to escape, Richter relays a message from his high command to Dr. Martel to warn anybody hoping to follow his example that reprisals will be taken.

As Clare tells her parents what she did, Kessler's body is found but it is assumed he died in an abortive raid on the island by the British led by Clive.

After "V for Victory" signs appear in library books, somebody takes to painting "V" signs on walls at night and lighting fires.