Having settled down, Cedric began making many changes to some of his grandfather's property, thus a major renovation at Fern's Field making its residents to believe it was his grandfather's doing.
Renovations continue much to the chagrin of his grandfather. The grandfather's sister, Lady Lorridale pays a visit. Although he greatly detests children, grandfather is soon realizing how important and loving Cedric is to him.
Lady Fauntleroy arrives, claiming her son is the rightful lord and not Cedric. During her stay, she is making it extremely hard for the staff and others in following her numerous ridiculous orders.
Friends Hobbs and Dick from New York travel to England to visit Cedric. Grandfather apologizes to Cedric's mother for his behavior, allowing her to move into the castle.