Anne's House of Dreams follows Anne Shirley and Gilbert Blythe as they start their wedded life together in their new house by the sea. The story takes place at Four Winds, a community close to Glen St. Mary, where the couple meets a variety of intriguing people, such as Captain Jim, the lighthouse keeper, and Miss Cornelia Bryant, a sharp and intelligent lady. Leslie Moore is a prisoner in a loveless marriage who Anne meets. After Anne loses her first child, their friendship deepens. Leslie lets Owen Ford, a writer looking for ideas for his book, stay in her apartment while the plot develops. Leslie and Owen start to fall in love, but their relationship is complicated by other factors. Gilbert examines Dick Moore, Leslie's spouse, and thinks surgery may be able to help him regain his wits. Leslie agrees, only to learn that the guy she married is in fact George, Dick's cousin. Leslie contemplates enrolling in a nursing program as Owen visits the island to pursue her now that she is divorced. The publishing of Owen's book, Captain Jim's dying, and Miss Cornelia's unexpected revelation of her upcoming marriage are just a few of the events that take place near the novel's conclusion. Gilbert and Anne leave the beautiful House of Dreams and go to the ancient Morgan home with their servant Susan Baker.
