She held a considerable grudge against those who had threatened Aang, as Zuko  had, or done things she considered morally wrong, like Jet. Misu warned them that Forgetful Valley's ponds needed to remained undisturbed, and retold the team her life's story. She and Sokka continued on their way and discovered a developing city where their village used to be. Sokka insisted that the Northerners' overall plan for the South was beneficial and that they need to adapt to the changing times, to which Katara retorted that the tribe's identity would be lost as a result. Katara, having arrived, looked on at the bridge with worry.
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The skies, however, soon grew stormy, and though Katara initially believed that a storm was coming in, Aang told her it was not a natural event.
Katara bloodbent the Southern Raiders commander. After a brief scuffle with Appa, the spirit threw up a swarm of moth wasps that attacked the entire group, making it hard for Katara to breathe. Later, when Aang entered the Avatar State to fulfill his promise, Katara calmed him down, and explained that when she saw Kori's family, she saw their future, outing her doubts about what would happen to them as a couple if the four nations would remain separate. Upon being asked if she could heal it, she remarked that all she could do was help guide the young Avatar's healing process, though the ultimate result of that was out of her hands. Five weeks after the insurrection of the Red Lotus was put down, Katara was visited by a still injured Korra and set out to heal her.