This episode starts out with Dusty trying to lasso, he then accidentally ropes a wild Appaloosa horse, and it gets him stuck around a tree. He then asks Mr Callahan if he can keep it. He checks to see if it is branded and the horse is not so he says he can have it. Dusty names the horse Freckles. Dusty tries to tame Freckles and he finally succeeds. That is when a rancher sees his horse and comes to the conclusion that Dusty has stolen it.

The rancher says the punishment for horse stealing is to be hung. Mr. Brookhaven tries to bribe the rancher to let Dusty go but he will not take it. They say that they will hang Dusty the next day so they handcuff him. During the night Mr. Callahan frees Dusty by stealing the keys from the rancher while he is asleep, but then Dusty ends up handcuffing himself to Mr Callahan. Dusty frees himself and Mr Callahan finds another horse that was chasing of the ranchers other horses, so Dusty will not be hung.