When cowhand Steve Clayton is framed and arrested for robbing a stagecoach and stealing $20,000 in gold coin from Mexican rancher Don Martinez and his daughter Dolores, Steve's friend, Smiley Burnette, the town barber, helps him escape from jail. Donning his disguise as The Durango Kid, the masked rider for justice, Steve tracks down the real robbers and discovers that Page, the rancher from whom Don Martinez was planning to buy some thoroughbred horses, is now in possession of the gold. Once again disguised as The Durango Kid, Steve pretends to make a deal with Page to exchange the coin for American currency. Later, when Steve tries to turn Page and the gold over to the sheriff, they are intercepted by Page's men. Thinking that they have been double-crossed, the outlaws kill Page and take Steve to their hideout, where they plan to kill him and then collect the reward that will be offered for Page's murderer. Smiley, meanwhile, has traced Steve to the hideout and helps him escape. As The Durango Kid, Steve draws the sheriff and his posse to the hideout. After the gang is arrested and the gold recovered, Dolores thanks Steve and asks him to express her gratitude to The Durango Kid.