The origin of the Lone Ranger's horse Silver and his use of silver bullets is explained.

The Lone Ranger still on the trail of Butch Cavendish and his gang sends Tonto to the town of Colby to organize a posse with the sheriff. Tonto receives no help and the suspicion is a number of people in the town are working for Cavandish. The Lone Ranger must launch a daring plan to foil the Cavendish gang's plan to take over the town of Colby.