Air date: 10/20/85

Punky and her friends are on a camping trip with Henry and Betty at Lake Waxahatchie, and Punky and her friends get lost in the woods while they're collecting wood for a campfire. While Henry and Betty are searching for them, Punky and her friends decide to seek shelter in an old Indian cave, where they sit around a fire as Punky tells a ghost story. The cave proves to be not quite abandoned, and the inhabitants divine that Punky is the successor to Princess Moon, who has been foretold to defeat the evil Owa Tagoo Siam. After Punky and the gang are sent off deeper into the cave, their first look at what the evil spirit can do is horrifying to them.

The Perils of Punky – Part 2

Air date: 10/20/85

The evil spirit conducts a campaign of fear through giant spiders, disappearing friends, and other things. Soon, only Punky is left, all of the others having vanished. The spirit attacks, but Princess Moon appears and reveal the weak point of his attack; it only affects those who fear it. Punky forces him to feel the positive emotions of the world, and the spirit dies, bringing everyone back from banishment. Betty and Henry find Punky and the gang sitting around the fire. Punky winds up her story, and they head back to camp with Henry and Betty, but not before one last goodbye from Princess Moon.

Just Say No

Air date: 10/27/85

Punky and Cherie are playing in the backyard when a girls club called "the Chicklets" show up. They say they love Punky's fashion sense and her tree house. They also explain to Punky and Cherie how being part of a club "is like everything." Punky invites them up to her tree house, and the Chicklets ask Punky and Cherie if they'd like to be a part of the Chicklets. The Chicklets want to make them members so they can use Punky's tree house for meetings. On the next day, Punky and Cherie say the pact to get into the club, and the Chicklets want to celebrate it by doing drugs. Punky and Cherie say maybe another time. Punky goes to Mike and asks him what to do. Mike hands Punky a book for the "Just Say No" club, and tells Punky about the club. On the next day, when the Chicklets pressure Punky and Cherie to do drugs, Punky tells the Chicklets about the "Just Say No" club. Chicklets member Kate, who is fed up with Chicklets leader Emily, wants to join the "Just Say No" club with Punky.

The Search

Air date: 11/10/85

Punky's feeling a little depressed because Mike has assigned she and her classmates to each work on their family tree. It's making Punky want her mother Susan back in her life. When Mike has a talk with Punky in the tree house, Mike tells Punky something surprising - Mike was born on November 23, 1955, and his mother gave him up for adoption when he was just a few days old, and he was never adopted, so he grew up in Fenster Hall. That inspires Punky and Mike to help each other search for their mothers. After six weeks of searching, Henry finally gets a lead on Mike's mother...and it leads him right to the phone number of Mike's mother Lois Collins, who is less than thrilled. Punky gets herself into a position to figure out more from Lois, finding out that she was 16-years-old when Mike was born. Years after Lois gave Mike up, she moved on to have another family. Punky makes a plea for Mike based on her own experiences, and while Lois doesn't take it well at first, Mike soon gets a visit to his classroom for a joyful reunion with Lois. The fact that Mike has been happily united with Lois delights Punky, who feels thankful that Henry found her and took her in after her mother Susan abandoned her a year ago.

Love Thy Neighbor

Air date: 11/17/85

On Halloween, Punky tries to play a practical joke on Isabelle Peavy, because Punky wants to get even with Isabelle for the way she treated Punky, Cherie, and Allen. Isabelle is a mean old lady, and Punky's friends think Isabelle is actually a witch. When Isabelle sees Punky trying to play the "flying foamie" trick on her, Isabelle takes Punky inside her apartment, and a terrified Punky runs back out, unintentionally leaving Brandon behind in Isabelle's apartment...and Isabelle may not want to give Brandon back. Punky gets Mike to go to Isabelle's apartment to get Brandon, and Isabelle explains to Mike the reason why she's so mean...because of something that happened years ago. Isabelle absolutely loved dancing. 12 years ago, while Isabelle was on her way to the Starland Ballroom to do some dancing, a kid on a bicycle collided with her, and didn't even stop. Ever since then, because of the resulting hip injury, Isabelle hasn't been able to dance, and she has hated kids ever since that day. Now, Isabelle becomes angry at Mike's attempts to offer some help to her, and she shows Mike and Brandon out of her apartment. Mike tells Punky what Isabelle told him, and Punky now wants to be Isabelle's friend. Punky, Mike, and Brandon later go back to Isabelle's apartment, but she's not answering her door, which is unusual for her. Mike kicks the door in...and they see Isabelle laying on the floor, obviously in pain. Isabelle explains that she fell, and that her hip hurts. Isabelle is rushed to the hospital, where she undergoes hip replacement surgery, and after she recovers, she's able to dance again. Realizing that her life was saved by a child, Isabelle rediscovers herself, and she apologizes for being so mean. Then she takes Henry out dancing.

The Gift

Air date: 11/24/85

The school's new cleaning lady, Linda, is a sweet, dedicated worker who is mentally handicapped. While Mike admires her spirit and Punky mentions how unfair it is that people like Linda sometimes get mistreated by other people, Linda's worried that she'll lose her job after Allen makes fun of her for miming along with a violin solo that Mike's class was listening to. Mike works to correct Allen's attitude toward mentally handicapped people, while Punky assures Linda that she's not going to be fired. The next day, Mike is setting up some musical instruments for a lesson when a conversation with Linda reveals that she may have a greater gift for music than even she realizes. Later that day, Mike brings in a person to play a violin solo...it's Linda, who plays for the class the solo from the previous day.