Siblings, Matthew and Marilla Cuthbert send for a boy from an asylum to help around the farm. When Matthew goes to the train station to pick up the orphan, a girl is there waiting for him. Her name is Anne Shirley. Matthew takes her home out of sympathy. When Marilla sees a girl has arrived, she wants to send her back. Matthew talks to Mrilla and compels her to keep Anne.
Anne meets Marilla’s friend, Mrs. Rachel Lyde. The woman condemns Anne for her appearance. She thinks Anne’s red hair, green eyes, and skinniness is unattractive. Anne loses her temper and tells Mrs. Lyde she hates her. Marilla later tells Anne she must apologize or she can’t come out of her room. Matthew kindly talks to Anne and convinces her to apologize. She agrees and Mrs. Rachel gradually grows fond of Anne.
At school, Anne meets a boy named Gilbert Blythe. He calls her “Carrots” because of her hair. Anne fights back by slapping her slate board on his head. Then, she gets in trouble with the teacher. After that, Anne decides not to talk to Gilbert.
Anne and some of her friends form a story club. They invent stories and act them out. One day, they were performing a story they made. For the production, Anne got in a raft and was sent down a stream. The raft was scraped and got a hole in it. It began to leak. Gilbert Blythe came up the stream of water and rescued Anne. He safely brought her to land then asked to be friends with her. She refused. Gilbert declared he would never ask to be friends with her again. Later, Anne regretted not accepting his offer.
Anne and other students, including Gilbert, are put in a class in preparation for an exam to get into Queen’s school. Anne takes the exam and gets in. Her and Gilbert tie in first place with the highest score on the test. At the school, they continue to try to outdo one another. They eventually graduate and Anne gets a scholarship college.
Anne decides to not go to college and stay in Green Gables to look after Marilla, as she’s getting older. Marilla's brother, Matthew, has since passed away. Anne seeks a teaching job at the local school, Avonlea, but learns that Gilbert has been offered that position. Gilbert selflessly decides to back out and let Anne teach there. This kind gesture changes the course of their relationship and they become friends.