The origin of the Lone Ranger's horse Silver and his use of silver bullets is explained.

Bob Kittredge is being forced by Red Devers to sell the ranch he inherited from his father. The Lone Ranger and Tonto, aided by Banty Bishop and the old ranch hands rescue Kittredge, and the ranch (and jobs of the ranch hands) are restored.

A promoter wants to purchase the famous war horse 'Black Cloud' owned by the Chief Lame Bear. Instead of purchasing the horse the people he employs steal the animal instead, taking Lame Bear's son as hostage in the process. After the capture of Tonto, the Lone Ranger needs to use all his diplomacy and cunning as a law enforcer to stop out right war between Lame Bear's tribe and the US cavalry.