Katerina 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.
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.
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.
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.
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.
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.
Katerina decides to ask Anna for manumission. Grigoriy finds out about her plan and persuades Anna and Piotr to say no, while simultaneously promising her to talk them into letting her go.
Grigoriy offers Katerina a manumission. She rejects the offer, since it implies she'd have to become his mistress. She tells Aleksey she is a bondmaid. Aleksey proposes to Katerina and she says yes.
Aleksey agrees to buy Katerina. Grigoriy tries to talk his parents out of this deal. His mother is almost persuaded, when suddenly Anna decides Kosach would be perfect for Katerina.
Piotr sets a high price for Katerina. Aleksey tries to take out a loan and fails. He tries to pawn his grandfather's ring and win some money at the casino, but all in vain.
Aleksey introduces Katerina to Sofia, who takes an immediate liking to her. Lidiya offers Aleksey to buy Katerina for him upon condition that he marries Lidiya. Kosach rejects her and goes to Kyiv with a commercial proposal for Zhadan.
Grigoriy keeps setting Anna against Aleksey. Zhadan gives Aleksey enough money for buying out Katerina and for the wedding. Zhadan's employees follow Kosach and steal part of the sum from him. Now he only has enough for the manumission.
Anna makes Piotr refuse to sell Katerina. Aleksey won't give up. Anna fights with Katerina over Aleksey. She confronts Piotr, threatening to change her will if his affair with Larisa tarnishes the family honor.
Nikolay tells Aleksey he had been belied by Lidiya and asks Natalie to set up a meeting between Aleksey and Katerina. Natalie agrees, but Galia finds out and tells Grigoriy, who sabotages their meeting.
Anna turns Aleksey out of the manor and locks up Katerina in her room. She hears from Varvara about Piotr's mistress and threatens him with a divorce and depriving him of all property in case he doesn't break up with Larisa.
Grigoriy brings Katerina back to Chervinka and locks her in the cellar. She finds out about Anna's death, blames herself, and falls ill. Aleksey is sent to jail.
To pay off Reshetnikov, Grigoriy pawns Natalie's wedding present, a ring. He accidentally runs across Aleksey in jail. Pavlina begs Natalie to put a word for Katerina with Grigoriy, but she blatantly refuses.
Aleksey accuses Grigoriy of dishonorable conduct, self-harm, and stealing military awards in front of the guests. He demands to send for Reshetnikov who would corroborate his words. It appears that Yegor has escaped from prison.
Grigoriy forges a suicidal note by Alekset. He spends the night at the casino, providing an alibi for himself. Meanwhile, Natalie finds out about the duel between Kosach and Grigoriy and comes to the appointed place to prevent it.
Having examined Aleksey's body, the district superintendent rules the cause of his death was a suicide. Nikolay has his doubts but doesn't act on them just yet.
