Exotic lovebirds arrive as The Paradise's newest exotic attraction and Pauline, smitten with them, volunteers to be the bird counter assistant. But in her exuberance over the birds and her desire to impress Sam, she removes one from the cage and it flies away. Panicked, she tries with Sam's help to hide the bird's absence from Dudley.
Denise’s feelings for Moray, intensifying over time, overwhelm her and she struggles to conceal them. But Miss Audrey is only too keenly aware of the cause of Denise's distraction: love. Learning that the man in question is Moray, Miss Audrey tells Denise that she must deny her feelings if she wants to survive at The Paradise and fulfill her ambitions.
Meanwhile, Katherine promises Moray to stop playing games and simply care for him. Her distress over Moray causes Lord Glendenning to take action. Aware that Conrad Jessup, a competitor who owns most of Tollgate Street, is planning to buy up all the nearby leases and squeeze Moray in rent, Glendenning offers to increase Moray's loan so that he can buy and attain the leases instead. Moray accepts the offer and is drawn further into Glendenning's debt. With Moray beholden to him, Glendenning gives his blessing to the relationship, and Moray, with Dudley's urging him toward happiness in mind, proposes to Katherine. But he immediately regrets his action. He’s trapped.
Arthur appears terrified of the skulking Jonas, who suspects that Arthur saw Burroughs getting into the carriage with him prior to his disappearance. Fearing what the boy might know, Jonas attempts to bring Arthur closer and is able to manipulate him into revealing his fear. He then reveals to Moray that he had disposed of Burroughs, who had threatened to expose evidence suggesting that Moray murdered his wife. When Jonas sees Arthur speaking to Edmund, he attempts to drive Edmund from the street by framing the dressmaker for slander against Moray. Provoked beyond control, Edmund hits Jonas, shocking everyone, including Edmund himself. However, Dudley is determined to find out the truth, as he distrusts Jonas and is worried by Moray’s reliance on him.
When Denise comes to apologize to Moray for her uncle she finds him in despair. Seeing him so distressed, she cannot resist telling him how much she loves him…and she kisses him. He kisses her back, but they are quickly interrupted. Before they have a chance to speak again, Dudley announces the engagement between Moray and Katherine in the Great Hall. Denise, shocked, betrayed, and unable to bear the pain, gives her notice to Dudley and leaves The Paradise. Moray tries to persuade her to return, but she is humiliated, and he is engaged to Katherine Glendenning.
Miss Audrey urges Edmund to cease his foolish battle with The Paradise. Denise turns up at Edmund’s shop, and although he is ashamed that his actions have caused her to leave – so he thinks – he finds in his niece's determination his own new resolve to save his shop.
Pauline finally admits to Dudley that one of the lovebirds flew away. But Sam saves the day: He takes the pining lovebird onto the street and before long, the missing bird flies towards its partner, and the birds are reunited in their cage.