
Jake, Loren and Horace are out hunting when Jake, mistaking an Indian for a deer, accidentally shoots and kills him. During the melee, Horace is wounded by an arrow, which Mike treats. Loren and Jake, frightened and guilty, try to cover up Jake's blunder by declaring that the Indians attacked. They persuade Horace to participate in this lie. Sully and Mike are caught in the subsequent hostilities between the Indians and townsfolk. The incident threatens to provoke an all-out Indian war, as well as a rift between Sully and Mike and between Sully and Cloud Dancing, until Mike elicits a confession from Horace and Sully intervenes to bring peace. Eventually, the Indian tribal council declares that Jake must make financial reparations to the dead Indian's family, including his horse, watch and ring.
After Snowbird gives Mike an Indian pony, Flash, in thanks for her work at the reservation Mike tries to enter the Territory Stakes Race, but race officials, Loren and Jake, won't allow a woman to ride. Dr. Cassidy arrives from Denver with his champion horse and spurns Mike attempts to speak to him colleague to colleague. Dr. Cassidy's rider, Drew, is injured and Mike diagnoses cranial compression, yet Dr. Cassidy refuses Mike's assistance. Drew dies and an angry Mike is determined to enter the race, disguised as a man. Meanwhile, with encouragement from Grace, Brian enters a pie-baking contest and is met with skepticism from Colleen and Loren. To everyone's surprise, Brian is declared the winner. Mike rides the race of her life and wins, but is disqualified when her disguise is revealed and Hank, riding Dr. Cassidy's horse, is declared the winner.