Their mother and father, Sharon and Joe, decide to move to Melchester College, a boarding school in the countryside, where they have both been offered new jobs as a cook and caretaker, respectively.

The sisters meet tall, badger-watching Harley, who gets along very well with Pearl, and three little children: Zeph, Dan and Sakura.

They also meet other members of the staff: the under matron, Miss Ponsonby (nicknamed "Undie") and the gardener, Jed.

Mrs. Wilberforce invites her to write her own story in the notebook, and Harley asks her to use the torch to sneak out and watch badgers with him at night.

Even though at first Pearl is scared, she begins to enjoy her nightly escapades with Harley and savours the fact that she can keep a secret from Jodie.

Pearl reassures her that they are only watching badgers and that they have not invited her because she can't stay still or silent for more than a few minutes.

Soon after, Jed runs over a baby badger that Harley and Pearl have been watching, and Jodie is disgusted at his indifference.

A few weeks after the school has reopened, Mr. Wilberforce asks Jodie to tell all the little children a bed-time story each night.

Mr. Wilberforce decides to punish Jodie by asking her to stand in front of the whole school and tell them that ghosts are not real.