Katerina, a nice girl, helps her godmother Anna who is worried about her son Grigoriy who went off to war and she hasn't heard from him in a while. Meanwhile, Piotr, Grigoriy's father, keeps running the estate, buys Nazar the blacksmith, and rapes his new bondmaid Vasilina. Grigoriy comes back home and tries to rape Katerina in a fit of lust. The girl is being rescued by Pavlina the cook.

Piotr expects his son to help him run the estate, but the latter refuses. However, Grigoriy needs money: he's being blackmailed by his ex-comrade in arms Reshetnikov. Chervinsky places an ad in a newspaper to sell his father's mistress Vasilina, which earns him his mother's gratitude and his father's wrath. Steward Yakov beats up Nazar the blacksmith for his alleged impudence.

Lidiya Shefer throws a reception to celebrate the war heroes. Natalie Doroshenko falls in love with Grigoriy Chervinsky and is happy to hear that Kosach has fallen in love with another woman. Katerina goes on a date with Aleksey, falls in love with him, but can't bring herself to confess that she is a bondmaid and not the squire's equal.

Grigoriy buys off Reshetnikov with a heirloom golden watch and accompanies his parents to the theater. Piotr seems enchanted by actress Yakhontova. Anna notices this. Natalie is upset with the lack of attention from Grigoriy, who goes home early to once again try raping Katerina. Aleksey starts his quest to find his beloved who has never told him her name or address.

Once again, Pavlina saves Katerina from Grigoriy's advances. She tries to set her up with Nazar, but all in vain. Also, she asks Anna to tell Katerina the truth about her father. Anna forbids her to do this. Lidiya brings Sofya money to pay off her debt to Chervinsky. Enraged by this, Aleksey goes to a casino and wins a hefty sum.

Katerina decides to confess to Aleksey that she is a bondmaid but can't find the courage. Grigoriy keeps making moves on Katerina and tortures her at a dinner with the Doroshenkos. Meanwhile, Aleksey confronts Grigoriy and Piotr over their inhumane treatment of their serfs. Later, he finds out about Andrey Zhadan, a former bondsman who has redeemed himself and is now building a sugar refinery.