During a storm Squire Armstrong believes he was attacked by Black Beauty and promises if it happens again, Beauty will be destroyed. Jenny, Kevin, and Ned try to keep the horse contained but Beauty has a equine friend she must get to.

There's been a drought causing a shortage of oats for Black Beauty. Ned works at the squire's stable to earn money for Aunt Amy's present, where he learns Potter is stealing oats and selling them secretly. Ned is not believed and Jenny is shut in a grain bin when they try to expose him. Beauty must come to the rescue.