Doreen, returned to prison and devastated after Franky's death, harasses Karen and Lynn, but calms down eventually. Barbara intrigues, but she is harassed and frozen out by the other women. After a while she is transferred, so is also Catherine. Karen has a retrial and a lenient sentence. Lynn is given work release outside prison. The mysterious Susan Rice, who is in conflict with her husband, is arrested for shop-lifting and taken to Wentworth. She is treated by psychiatrist Doctor Weissman, the first of his many coming cases among the women at Wentworth. Vera resumes friendship with the fired Anne Yates and has a short romance with Anne's pusher, George Lucas. Anne is arrested for drug crimes and as a former prison officer she is harassed by the women at Wentworth. She stabs Bea, who must be taken to hospital. To escape the other prisoners, Anne hides in a laundry drier, but it gets locked and she is found suffocated to death.
Bea takes the opportunity to escape from hospital and first seeks refuge with Mum Brooks. During Bea's absence, Monica Ferguson fights with Noeline Bourke about being top dog, but the generous Clara Goodard becomes most popular among the women. Officer Joyce Barry and prisoner Kathleen Leach are at first semi-characters, but after a while their roles grow. Bea, who now has seeked refuge with Val Richardson, is revealed by a neighbour and returned to Wentworth where she immediately takes back the top dog position. Noeline's brother, Col Bourke, is shot to death by police after a failed burglary. Noeline is released and Clara transferred. Meg and Greg have a short romance. Karen, who is allowed to study at university on daytime, acts as interpretor for new prisoner Irene Zervos, who only speaks Greek and is eventually deported.
After all trouble at Wentworth, Vera is made scapegoat and degraded. Appointed as new Deputy Governor is the unpredictable Jim Fletcher. He has matrimonial problems with his wife, Leila Fletcher. A new prisoner is Joyce Martin. She knows where the money from her husband's latest bank robbery is hidden. Several persons are out for this money. Lynn and Monica are released. Joyce asks Monica to take care of the hidden money. Monica's husband, Fred Ferguson, and his girlfriend, Denise "Blossom" Crabtree, tries to get their hands on the money. Monica bashes Fred and is returned to Wentworth (the same crime as last time), as well as Blossom. Finally, it is Jim who finds the money by using the released Blossom. He hands it over to the police and claims the reward money. Steve tries to found a halfway house for released women and wants Karen as manager. She meets several influencial persons, among them psychiatrist Peter Clements, who under cover wants to study prisoner behaviour.
Officer Colleen Powell and prisoner Phyllis Hunt begin to come into the story. Blackmailer Melinda Crosse arrives as remand prisoner to Wentworth, but is pardoned because she is pregnant. Edith Wharton, who was taken to Wentworth after her man died and she became homeless, dies herself the night before her release. Noeline is imprisoned again after a burglary. A new prisoner is Bella Albrceht. She is on remand for having murdered her child and not unexpectedly she is herself murdered after only some day in prison. The guilty proves to be Martha Eaves. Antonia McNally, wife of a gangster boss, is taken to Wentworth after having killed Jackie Coulson, who had an affair with Antonia's husband. Antonia challenges Bea for top dog. Karen is finally pardoned and released, as well as Noeline and Monica.
The Head of Department, Ted Douglas, makes the first of many visits to Wentworth. He forces Erica to take leave of absence, during which Jim is made Acting Governor with Vera as his Deputy. Karen gets to know Angela Jeffries from the Prison Reform Group and the project with a halfway house can at last be realised. Antonia is freed in court after having threatened the main witness, Glenys Buchanan. Jackie's daughter, Roslyn Coulson, takes revenge and shoots Antonia to death and is herself taken to Wentworth. Another new prisoner is Pat O'Connell, who is transferred from Barnhurst together with the pregnant Chrissie Latham, something which makes Meg very upset. Erica is reinstated as Governor.
The almost constantly depressed Doreen is released and becomes the first inhabitant at the Halfway House. She resumes contact with her mother, Alice Hemmings, who is dying from cancer. Roslyn is sentenced to life imprisonment and thereafter takes the first chance to escape. Karen lets her stay one night at the Halfway House. She then tries to leave the state but is recognized, arrested and returned to Wentworth. Prisoner Rosie Hudson, who is at maternity, is according to rules deprived of her child after one year. Chrissie is badly liked by both prisoners and staff, but her expected baby gives her an opportunity to be accepted, even by Meg. Pat is pardoned to take care of her children. The women stages the traditional Christmas play. Roslyn has written the manuscript and all warders are given there share of irony.
Pat's son, David O'Connell, who has escaped from Pentridge and hides with his friends, Shayne Berkley and Herbie Smith, tries to contact his mother. The police have set a trap and a gunfight occurs. Shayne is killed and Pat arrested. David and Herbie wrongly believe that Greg tipped the police, instead he tried to warn Pat. Greg, who now has his own practice and only works part time at Wentworth, and Karen are engaged. David tries to shoot Greg, instead Karen is hit and badly injured, but she survives after operation at hospital. Karen and Greg plan to get married and move to Queensland. Karen now disappears from the series, but Greg stays on for a while. Political activist Janet Dominguez is held at Wentworth pending extradiction. Roslyn helps her with an escape plan and is promised to come along. The plan fails and Janet's armed comrades get into a gunfight with police. Erica is hit when she comes in the crossfire.