A hawk Lassie rescues from entanglement in kite string returns the favor when the coyote pup Lassie has befriended is threatened by a snake. But it's Lassie herself who then must be rescued by Ron Holden and Dale Mitchell, two young men on a hiking trip, after she must save the hapless pup from nearby rapids.

The boys and Lassie sleep in an old barn that appears to be haunted.

Ron and Dale return to the Holden Ranch, where Lassie is welcomed by Garth Holden and his foster sons, boys who have been orphaned or abandoned by their families.

Garth and Dale survey rangeland for the Forest Service and see a young white stallion challenging the older black leader of a horse herd; Garth predicts the white horse will soon succeed. When he does, driving the injured black stallion away from water, Lassie tries to lead him to safety before he collapses.

As Lassie gently leads the stallion back to the Holden Ranch, Garth and Dale leave food and drink for the animal, hoping he will choose himself to live at the ranch.

Ron and Dale, home from college, go out on the annual stray roundup and make a bet on which of them will find the most cattle. But it's Lassie who gets the jump on them, helps a calf stuck in quicksand, and then must help Ron when he's thrown from his horse.

Ron and Dale, spending two days camping at Pine Lake before returning to college, pick up a boy that Dale can tell is ""on the run."" Sure enough, once he leaves them he builds a campsite in the woods. When the boys find his camp in the woods, he steals one of the motorcycles they've rented.

A runaway inner-city orphan is taken in at the ranch, but is distrustful of everyone.

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Dale, riding Midnight and accompanied by Lassie, is injured when he falls from the horse.