After a fatal accident on the NWR, the reputation of the railway is hanging on a thread and Sir Topham Hatt is summoned to a court hearing to determine the future of the railway.
After Toad says that he wishes to take the governor of Sodor, he is teased by Crovan. Crovan gets into an accident in a siding, resulting in the governor making an unexpected decision to use Toad as his mode of transportation for the day, much to Crovan's dismay.
When the crossing just outside Wellsworth is having it's gates repaired, George takes some very poor advice from Bulgy to jump crossings. This almost caused him to have accidents with Edward and Spencer. One day, George tries doing it when Gordon is coming, but his back roller gets stuck on the rails. Gordon rams into George, damaging his front and splitting George in half and throwing his remains into two bushes.
D199 is given a second chance on Sodor, and although he has changed his views on steam engines, the other engines don't trust him. When he was given a job of hauling tankers, his driver told him he didn't have enough fuel to continue the journey. D199 insisted that since the tankers were unmarked, they were likely carrying fuel that they could use to fill his tank. His driver filled his tank and tried to move on, be he stalled and his engine began smoking. He also began seeing hallucinations of Bertie, Smudger, and Diesel 10. The Fat Controller told him that the tankers were filled with beer, much to the diesel's embarrassment and the hilarity of Henry and James.
D199 attempts to help Donald and Douglas after having his diesel tank drained of beer, but they Scottish Twins stubbornly refused do to them not trusting him. However, when they later got stuck on a collapsing bridge, he came to their rescue. Although he was able to save the twins, the bridge finally collapsed under him and D199 fell to the water below. Donald and Douglas were happy that he saved them, but felt guilty for being so rude to him. D199 was eventually fished out of the river and was awarded by the Fat Controller by being purchased for the North Western Railway and given a new name, which was Ted.
It's Toby's special day, and Bill and Ben try to guess what's so special about him with their not so great intelligence.
Duncan tells a chilling ghost story about an extremely evil engine to the others, but it may be truer than he thinks.
It is a very wet season on Sodor, and Thomas hates the mud. Terence, on the other hand, doesn't mind it. But this may change after one very stormy day.
Gordon tells some engines at Knapford about the story of Diesel and what happened after Duck was sent away.
Diesel accidentally crashes some trucks into the Express coaches and then blames it on Henry. Henry tells Sir Topham Hatt to try to prove that he did with evidence, which ultimately leads to the engines discovering Diesel is not who they thought.
Duck and Douglas suffer an accident and are sent to be repaired. The Fat Controller brings Bill and Ben to help with the freight on the Little Western. Needless to say, though, the twins are very mischievous. Fortunately, Oliver has a clever plan to keep them in order.
The Fat Controller buys a special kind of engine called a Garratt, a three-headed-engine. Which can't agree with each other.
Duke remembers his siblings back on the Ffestiniog Railway, and how he did not get a long with them. However, the other engines can see that he really does miss them.
A certain diesel that all engines fear is terrorizing poor Percy. However, Percy looks to a certain artifact from his past that might put Diesel 10 in his place.
Harold always saves the day and rescues those in need. He starts to get a little cocky and thinks the railway cannot compete with him. However, a foggy day may put him back in his place.
After Henry almost gets blown up by fuel tankers, he is so traumatized that he develops an irrational fear for his and everyone else's safety. Part of this is due to an incident that Henry witnessed long ago, which involved Alfred attempting to kill him and Gordon. Henry discusses this with Edward and Edward counsels him about his painful memories and helps him overcome them.
Jock is assigned to help Sigrid and the workmen remove trees, which turns into quite a fiasco when a sudden storm hits.
A large creature is wrecking havoc on the Ffarquar Branch, and people are starting to wonder if this creature is Bigfoot.
Edward is getting old, physically and mentally. He is starting to wonder whether it is time for him to withdraw from regular service.
The story continues where 'A Turning Point for Edward' left off.
A hippo from the zoo gets loose and wanders into the hills of the Skarloey Railway. Ivo Hugh must catch it, but he is quite scared of how ferocious it may be.
When traffic begins to increase on the Ffarquhar Branch, the Fat Controller decides to bring Rose, one of Daisy's twin sisters, on trial. Unfortunately, being almost exactly like Daisy, history repeats itself when she feels she is too highly sprung.
A devious goat causes trouble for the Culdee Fell Railway.
A troublesome gang causes trouble on the Island, and when James comes face to face with them, he has a clever trick up his wheels to bring them to justice.
Thomas tells Percy and Toby a ghost story about an engine named Timothy.
Henry has to take some supplies to the Station by the lake. But after Edward tells him a ghost story about that station, and a ghostly man named Guto Chwyldroadl, Henry starts to think the story is true.
When a railway society comes to write a book about all of the engines they visit the Skarloey Railway, where they are especially fascinated with Duke's stories on the Mid-Sodor Railway. They look through all the records to see if there are any other surviving engines besides Duke, Peter Sam, Sir Handel and Bertram. While doing this, they come across a locomotive whose fate has not been accounted for. This engine's name is Smudger, and everyone is curious about what happened to him. Brackley and his team travel on the Arlesdale Railway to look for the remains of an engine, but to no avail. It's up to the narrow gauge engines to discover the truth behind Smudger and his disappearance.
Though he has gotten better and no longer abuses his coach, Crovan is still boastful and rude as usual. After a nasty accident during a visit from the Flying Scotsman, can the famous green engine help get Crovan to get his act together before it's too late?
The race is on to catch whoever is responsible for the acts of sabotage on the Fat Controller's railway.
Phil Boggiston is at large and is planning multiple attacks on the railway, including blowing up Knapford. Can Sir Topham Hatt and the engines put a stop to this before the railway is destroyed?