Billy's relationship with classmate Julie threatens his hard-won place at the academy. Mr. Whitaker and Dr Jolland travel to Salzburg to learn why.

Billy and Julie's time together at the seaside cottage comes to an abrupt halt when a stranger comes between them. Gunter Walser and Mr Whitaker arrive with news about Helga Gruber.

During a visit to the cottage, Miss Price reveals just a little of her past, while Mr Whitaker's acceptance of a sailing invitation inadvertently thwarts an attempt on Billy's life.

Through a local villager, Billy learns that Karl Gruber was responsible for the boat explosion. He decides to return to the Salzburg Music Academy, not just to resume flute lessons but also in the hope of luring Gruber out into the open.

Having lost his scholarship, Billy needs to support his studies. He takes a job as a waiter in a cafe, little knowing that the owner is the very man he has been searching for.

Mrs Dalgleish returns with a message from Kurt: "Stop looking for him." After being told he already knows him, by another name, Billy finally realises who Kurt is.

Billy confronts Karl and at last learns the full story of how, and why, his parents died.