The Franks and Van Daans move into the secret annex. We meet the younger Miep and Mr. Kraler. The reader learns their ages and how each one is connected to Mr. Frank. Mr. Frank tells them the rules. Anne gets into quarrels with just about everyone in the annex. We meet Mr. Dussel with whom Anne must share a room. He is meticulous and set in his ways, so he and Anne do not get along.Mr. Frank gives Anne a diary. When he stops her from going into the office to get a pencil, she realizes for the first time what going into hiding really means. Anne has a nightmare about all of them being arrested by the green police. She hurts her mother’s feelings by refusing her comfort and asking for her father.The Franks, Van Daans, and Mr. Dussel celebrate Hanukkah. Anne gives everyone presents that she has made.They are frightened by a thief breaking in the office building, but Peter accidentally knocks over a lamp and scares him away. Mr. Dussel thinks that the thief will turn them in and blames Peter.Mr. Kraler brings news that an office worker may know of their hiding place and is blackmailing Mr. Kraler.Anne and Peter begin a close friendship, although Mrs. Van Daan does not approve. Anne is finally able to share her intimate thoughts with someone.Mrs. Frank catches Mr. Van Daan stealing bread and she demands that he and his wife find another hiding place.Miep brings news that the D-day invasion has begun, and they all celebrate. Mr. Van Daan and Mrs. Frank apologize to one another.