Episode 7 of Once Upon A Small Town starts with Ji-yul and Ja-young gazing at each other at the lake. A jump cut takes us to the next morning where Ji-yul is worried about running into the police officer. Ja-young talks to Officer Ma-sung. He is somehow able to pinpoint her problems right to the T as he mentions his dilemma with Ji-yul and Sang-hyeon’s respective confessions.
At the animal hospital, Ji-yul is lost in thought when Seon-dong arrives with his friend, Hui-won and her pet rabbit. According to the kids, the rabbit had diarrhoea. After Hui-won gets very emotional about the pet, Ji-yul promises to treat her. The vet and Nurse Yeong-suk notice that Hui-won was extremely furious with Seon-dong and they wonder if the two friends were in a fight.
After the treatment, Ji-yul tells Hui-won that the rabbit was better now and that it will have to stay at the hospital for a while. Seon-dong tries to talk to Hui-won but she stares him down meanwhile, Ji-yul senses something is wrong. After Hui-won has left, Ji-yul talks to Seon-dong, the child reveals that there was something Hui-won had given her as a present and that he had forgotten what it was.
Seon-dong states that Hui-won is now upset about that and he asks for Ji-yul’s advice. The vet tells him that the best solution was to give her time. He tells Seon-dong to stop talking to her for a while. The child agrees to accept Ji-yul’s advice as goes away. Ji-yul then recalls his awkward interaction with Ja-young after he had revealed to her that his memories had returned. Just as he is about to call her, Ji-yul gets called due to an emergency.
Ja-young is near the police station when she sees a sulky Seon-dong passing by. She calls him and is shocked to learn about Ji-yul’s advice to the child. She scolds Seon-dong for ignoring Hui-won as now the girl is further furious with him. Ja-young offers Seon-dong some advice herself and tells him to sincerely apologise to her. Seon-dong agrees to take the advice.
Meanwhile, Ji-yul is just back at the animal hospital after his house call when a crying Seon-dong comes running toward him. Seon-dong reveals that after following two contrasting pieces of advice given by Ja-young and the vet himself, Hui-won was further angry at Sean-dong for constantly changing his attitude towards her. Ji-yul is shocked to learn what Ja-young’s advice was and tells him to firmly follow his own advice.
Ji-yul feels Seon-dong that should be very patient and let Hui-won take her own time to come back to him. Seon-dong states that since Ji-yul has a girlfriend while Ja-young has been single her whole life, it was wise of him to listen to Ji-yul. That evening, Ji-yul is on a house call where he finds Ja-young. She takes the chance to thank him for saving her life during the car accident.