Steve Lawton, aka The Durango Kid, U.S. Army undercover man, and his assistant Smiley, are sent to Santa Fe by Army investigator Copeland to deliver a gold shipment and check on the strange disappearance of Captain Tanner from Fort Navajo. Copeland is murdered by Forsythe, a fake government agent,who orders Krag Benson 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 is being held hostage by Forsythe and his gang.
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