After the Cameron gang is captured and jailed, the question of all the gold they stole remains unanswered. Tonto agrees to pose as a convict to try an infiltrate the gang and get clues to where the gold is.
The Lone Ranger and Tonto arrive in Cottonwood in time to see a law reformer gunned down by an outlaw. The mood in the town is such that the Lone Ranger has to also protect the outlaw from outraged citizens, and the sheriff---the reformer's fanatical son.
The Lone Ranger and Tonto capture two renegade Indians responsible for a recent attack. Tonto points out the strange marking on their face. The Lone Ranger decides to investigate why peaceful Indians have suddenly taken to war and what the new marking on their faces mean.