Told he needs a vacation, Charles and family visit Edwin's villa in the south of France. Perdita sneaks home once the family is gone to be able to carry on with her boyfriend.
Charles' heart attack scares the family, alerts the press, and leaves Charles considering an offer for the Princess Theatre. Hegarty's nephew Fergus Ryan appears, impressing Emily. Silverstein suspends Edwin for the rest of his 3-year film contract. New cook Mrs. Dean wows the family after the vegetarian mush served by the unlamented Gladys.
Hagerty discovers Fergus is on the run from Irish thugs. Charles refuses to use Equity contracts and threatens legal action. Eduardo attacks Martha, but Oliver Mortimer shows her that going to court would shred her reputation and then asks her out.
Doing research on hospitals for a play, Thomas meets a cheeky medical student. Fergus is still terrified that the killer he saw will come after him. Oliver wants Martha to campaign with him, and Thomas' new flame Meg turns out to be the sister of Oliver's opponent. Lydia talks Charles into playing Romeo opposite her in a radio play.
The staff are still grieving Hegarty's death, and Sutton blames himself. Charles' and Lydia's touring companies are doing badly because everyone prefers "talkies," but Charles refuses to believe people won't come if the show is good. Oliver continues to pursue Martha. Edwin's proposal to turn some theatres into cinemas angers Charles. Claudia tries to help Sutton stop blaming himself for Hegarty's death. Guy Benson wants to screen test Perdita even though she says she wants a stage career, but Charles and Lydia mistrust his motives.
Edwin and Diana continue their affair, but Diana becomes more jealous as Edwin spends more time filming and dining with his co-star. Oliver proposes to Martha. Edwin and Charles agree to appear in Douglas Barron's movie of "Our Mutual Friend" in return for distribution rights for their cinema chain. Meanwhile, Lydia stars in "Strike Up the Band."