 Steve Lawton, aka The Durango Kid (Charles Starrett), U.S. Army undercover man, and his assistant Smiley (Smiley Burnette), are sent to Santa Fe by Army investigator Copeland (Fred Sears)to deliver a gold shipment and check on the strange disappearance of Captain Tanner (Paul Campbell) from Fort Navajo. Copeland is murdered by Forsythe (Steve Darrell), a fake government agent,who orders Krag Benson (Bob Wilke) and his other henchmen to ambush Steve and Smiley and steal the gold shipment. Steve and Smiley escape the trap and reach Santa Fe, where they learn that Tanner s wife Alice (Lois Hall) is being held hostage by Forsythe and his gang.