Episode guide
Part One:August 1844
Matty Jenkyns has closed her tea shop and now looks after Tilly, the baby daughter of her maid Martha and carpenter Jem Hearne, while the pregnant Martha works in the kitchen. Captain Brown readies the opening of a train station at Hanbury Halt, five miles from Cranford. Lady Ludlow refuses to sell her land to enable an extension to the town Mrs. Bell, a widow with two grown children, continues deep mourning fourteen months after her husband's passing. Daughter Peggy dresses in outdated clothes and has little opportunity to socialise with people her own age – including potential suitors. Wealthy Mr. Buxton has returned to his lands following the death of his wife. He brings Eton-educated son William and also his ward Erminia, educated in Brussels. William and Peggy begin to have feelings for each other.
At Hanbury Court, Lady Ludlow is dying. Miss Galindo attends to her needs and has tried unsuccessfully to contact Lady Ludlow's long-absent son Septimus, living in Naples ostensibly for his health, to alert him of his mother's illness. However he eventually arrives in London en route for Cheshire.
Lady Ludlow collapses and dies before her son arrives. Meanwhile, Martha has gone into labour as Jem is summoned to Hanbury Hall for his duties as undertaker. While he is gone, she begins to haemorrhage. Matty sends for a doctor, but none is available; Martha dies.
Lady Ludlow's son Septimus arrives with his foppish Italian companion Giacomo. Their lavish lifestyle has drained Lady Ludlow's fortune. His mother took out a mortgage on her estate. Her former estate agent, Mr. Carter, now deceased, made provision in his will for her to be loaned the money (from his bequest to Harry Gregson) to pay off the mortgage. Septimus begrudges the fact that he must pay back this loan to Harry Gregson with interest.
Septimus arranges for a carriage to fetch Harry from his school. Septimus offers to give Harry £5,000 immediately if he will agree to relinquish his claim to the balance of the money that is owed to him. Harry will then be able to pay for the village school, while Septimus will (he claims) retain the estate. Although Harry is only fourteen they seal the deal by shaking hands in a "gentlemen’s agreement."
Captain Brown calls the town together and reveals that the railway will now be able to reach Cranford, as Septimus has sold the entire Hanbury estate to the railway. Harry, dismayed, tells Miss Galindo of his agreement with Septimus and Miss Galindo intervenes to put a stop to it. Many residents are still opposed to the railway – including Mr. Buxton, who reveals that he owns a parcel of land previously thought part of Hanbury Park. He refuses to sell, blocking the railway's progress.
Mary arrives to stay with Matty and says that she is engaged to Mr Turnbull, a wealthy man. Jem Hearne tells Matty that he and Tilly will have to leave Cranford if the railway does not reach the town due to lack of work.
Matty realises that she will have to change. She invites her friends and neighbours to accompany her on a train journey so they can see that it is not the evil force they might think it is. Her four friends come, along with Mr. Buxton, his son William and Peggy Bell. As Matty herself begins to feel ill, others gradually relax and find themselves enjoying the trip. In a separate carriage, William and Peggy sit on opposite benches. As the train lurches, they are thrown together. He then confesses his love for her and asks her to marry him.
The train returns to Hanbury Halt. Mr. Buxton's tells Matty that it took great courage to try to persuade the others. He is sorry to have stood in the way of progress; thanks to Matty's excursion, he has decided to sell his land and allow the train construction to proceed.
Part Two:October to December 1844
When Mr. Buxton discovers that William and Peggy are engaged, he refuses to give his blessing, hoping instead to match William with Erminia. He takes out his frustrations on Matty, blaming her for presenting the opportunity for the two to be alone on the train. Determined to marry Peggy anyway, William turns to Captain Brown for an apprenticeship on the railway.
Meanwhile, Peggy's brother Edward becomes an agent for Mr. Buxton and takes charge of the sale of the parcel of land to the railway company. However, he embezzles some of the money. In addition, he evicts Mr. Buxton's tenants, including Harry Gregson's family, while falsely implying to Mr. Buxton that other arrangements have been made for the tenants' accommodation. Harry Gregson's family leaves Cranford after failing to get word to him.
Mary's stepmother arrives in Cranford and the fact that Mary has gone back on her promise to marry Mr. Turnbull is revealed. Mary wants to pursue her writing and leaves for London, leaving Matty alone in the house with her brother Peter.
Harry has been miserable at his school, where he has been beaten by some of the other students. He runs away back to Cranford to discover that his family have moved on. Miss Galindo and the Reverend Hutton are adamant that Harry must return to the school. Harry runs away, intending to stow away on the next train out of Cranford.
William, while working at the railway, stumbles across evidence of Edward's embezzlement. Edward arrives home; he stole the money to pay gambling debts. The Bells are told that if convicted of the crime, Edward will be deported as an indentured labourer. Mr. Buxton seizes upon the opportunity to offer Peggy a deal. He will arrange for Edward not to be charged if she calls off her engagement to William. Peggy decides to refuse Mr. Buxton's offer. The police have a warrant for Edward's arrest and Peggy's sense of duty compels her to decide to accompany Edward on a flight to Canada. She sends a note to William via Miss Matty telling William what has happened, and he races off to catch the departing train.
Whilst running away.Harry jumps from a bridge onto a wagon pulled by the train. Almost immediately after that the cow Bessie is hit by the train, derailing it. William arrives at the site of the train crash searching for Peggy. William manages to save Peggy from the wreckage, only for Edward to steal the money and flees. The locomotive explodes as he runs past and he is killed.
Miss Galindo and the vicar find a seemingly dead Harry after realising he was on the train when it crashed. They realize that Harry is still breathing. They wrap him and rush him back to shelter.
Miss Matty decides she will use some of the money from her shop to restore the assembly hall and hold a Christmas Eve party to bring everyone together. Invitations are sent and everyone accepts except Mrs. Jamieson, who has not forgiven her sister-in-law, the widowed Lady Glenmire, for marrying Captain Brown. Matty is also sad because she has not heard from Jem in a while. Meanwhile, Miss Galindo and the vicar put a new proposition to the recovered Harry: Miss Galindo will pool her money with Harry's and use it to buy a house near Harry's new school in Manchester, and Harry will be able to return to the house and Miss Galindo each evening. They will fulfil Mr Carter's wish that Harry be educated and improve his position in life.
Mrs. Forrester is still grieving the death of Bessie; Harry approaches her on the evening of the party and presents her with a new calf to replace Bessie as he apologises. As people gather in the newly refurbished hall, Mrs. Jamieson arrives on Peter's arm, having relented, and she reconciles with the newly-wed Captain Brown and Lady Glenmire. Signor Brunoni then starts his show and asks Miss Pole to enter his "magic box". He then asks Miss Matty to come up and open the box. She finds Miss Pole inside the box holding Tilly, and Jem walks up the aisle and says that with the train coming to town he is moving back.
