Texas Ranger Sergeant Jim Steele (Jim Newill) spots Pete Dawson (Bud Osborne) taking horses over the Mexico-Texas border, but Dawson has an alibi. A new group of recruits arrives at the Ranger station, among them, Tex Wyatt (Dave O'Brien), the son of Ranger Captain John Wyatt (Forrest Taylor), whom he hasn't seen for many years. Captain Wyatt tells Tex that, in the Rangers, he is there strictly on his own merit and there will be no favors played. He assigns Tex to pick up Dawson's trail, but orders that no arrest be made without proof. Jim, Tex and Ranger Panhandle Perkins (Guy Wilkerson) find Dawson and his men at the Oasis Trading Post where, forgetting his orders, Tex tries to arrest him. A fight ensues until Jean Lorin (Iris Meredith), the Post owner, covers the fighters with a gun and demands they stop. Dawson escapes and Captain Wyatt dismisses Tex from the Ranger Service for disobeying orders. The embittered Tex joins up with Rance Blair (I. Stanford Jolley) who, unknown to Tex, is partner of Dawson. He also unknowingly becomes involved with the rustlers, and is captured and arrested by the Rangers, but escapes. Captain Wyatt is wounded in the pursuit of the gang, and is captured and taken prisoner to their hideout.