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Sugarfoot joins a group of horse-hunters in the foothills of New Mexico. He captures a prime black stallion, but the leader of the horse-hunters claims the horse for himself. A member of the gang steals the horse for Sugarfoot, but sells him in Sante Fe for $250, pocketing $100 and giving Sugarfoot the rest. Sugarfoot apprentices himself to the stallion's new owner for a year to gain ownership of the horse. He breaks the horse, called Diablo, to saddle and the ranch owner enters the pair in a big Fourth of July race.
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