Knowing the Army is arriving to establish a post. Doc Hagan and his gang and the crooked Sheriff are trying to drive the ranchers off the land. When the gang wound a rancher, the Doc finishes him off with his needle. Running from the law again, Billy and his pals arrive and take up the ranchers fight. But when Billy's pal Jeff is wounded, Fuzzy unknowningly takes him to Doc Hagan.

Billy the Kid and his pal Jeff help their friend Fuzzy Jones escape from jail, and the trio heads for Paradise Valley, where they find the Paradise Land Development Company, ran by Matt Brawley and Jack Saunders, is somewhat less than honest in their dealings with the homesteaders. They devise a plan to cause a split between Brawley and Saunders.