Prospector Cimarron Dobbs (Emmett Lynn) stumbles on a vast cache of Spanish gold left in Texas by Santa Anna's army, and knows he will be swindled out of his discovery unless he gets help. Saloon hostess Dixie King (Helen Mowery) agrees that he must secure the help of the Durango Kid (Charles Starrett), otherwise known as Steve Reynolds. Dobbs is kidnapped by a gang headed by John Munro (Robert Filmer'), owner of the saloon where Dixie works. She writes Steve, and the Durango Kid and his sidekick Smiley (Smiley Burnette) ride out to help. Meanwhile,henchmen Rankin (George Chesebro) and Slade (Zon Murray) are vainly attempting to learn the location of the treasure from Dobbs. Steve begins to suspect that Munro is involved, and offers a $5,000 reward for information leading to Dobb's whereabouts and announces that the treasure will be divided among the needy ranchers in the area.