Down Where the Moon is Small

Huw and Lal have settled outside of the City of Mill where they build a farm in the forest. Huw and Lal face problems with an increasingly corrupt government and Lal's uncle raising a challenge again get deceased father's will. Fearing she will lose her inheritance of the family farm, Lal travels to Buenos Aires to fight her uncle in court.

Huw's business prospers, growing successful from a number of government contracts building roads and buildings and equipment for the army.

The local indigenous people become increasingly unsettled by the government. Despite Huw's good relationship with them, Patagonia becoming part of Argentina and not Chile causes most of them to leave the area for the mountains.

After many months away from Lal, Huw finds out she is pregnant and sets off to reunite with her. On the way to Buenos Aires, he meets Lal's half-sister, Lliutro. She drugs Huw, who spends seven weeks in her tent in a stupor until spring arrives. On his eventual arrival in Buenos Aires, he is reunited with Lal and her sisters and meets his baby son for the first time.

With his business booming and the court case won, Huw and his family return to their home. Despite initially being happy, a puma snatched their young son and Lal dies chasing after it. Huw struggles with the loss and spends time living with the Indios in the mountains before a bout of the measles kills many of them, including Lliutro.

Huw spends time in Europe before realizing what a mess he has become. He returns to the village in Patagonia but finds it changed and run down. He spends time trying to improve the lives of the Indios and discovers that Lal has a half-sister who he eventually ends up marrying.

The arrival of Peron's government heralds a change that sees the Indios persecuted further and corruption increasing. No longer feeling safe, Huw returns to Wales to try and save the village he grew up in from being destroyed by waste from old mine workings, but is unsuccessful.

• Huw Morgan, the narrator
• Lal, Huw's fiancee whom he marries.
• Vyrnwy, blacksmith and a business partner of Huw.
• Doli Corwen, sister to Lal.
• Solva Corwen, youngest sister of Lal.
• Volde, a Russian who marries Doli.
• Oracio Hernandez, an Argentinian calvary officer
• Merddyn Gruffydd, a former preacher who Huw knew from his childhood in Wales.
• Lliutro, Lal's illegitimate, younger half-sister.
• Sûs, Lal's long-lost sister.

The author continued the story of Huw Morgan's life in Green, Green My Valley Now (1975), in which Huw returns to Wales.