Banty Prentiss returns to Medicine Bow after his parole on the recommendation of his friend Sheriff Johnny Mack Brown, who had arrested him for bank thefts. Outlaws, led by Buckeye, fail in an attempt to ambush Johnny and Banty. Nan Prentiss, Banty's daughter, dislikes Johnny for having imprisoned her father. She eludes Buckeye's men and arrives in town in time to pay taxes on her ranch, which banker Harry Stuart wants. When Banty and handyman Alibi Terhune find quartz on the ranch, assayer Jim Carson claims it is fool's gold. However, one of Johnny's deputies gets another report from the town of Baxter Forks, which proves the gold is real. Stuart has Buckeye hold up the bank, while Banty is there, so the latter can be blamed but Nan rescues her dad from jail. Johnny foils an attempt to kill Banty, and henchman Pardo kills Buckeye as he is about the reveal the name of the gang leader. Johnny and Banty are captured and jailed by Pardo, who has made himself the sheriff. Stuart tells Nan he will have Banty freed in exchange for the property, but Alibi informs Johnny what is happening and he and Banty make an escape. Carson and the other outlaws are killed in a blazing gun battle at the ranch, and Stuart is thrown as he tries to escape on Johnny's horse, Rebel.
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