Dr. Gordon and Black Beauty head to the quarry after a blast goes wrong and men are injured. Lawson is fired by the squire for negligence and in revenge he steals cash and horses, including Beauty. Beauty escapes, alerting Jenny and Kevin, who endanger themselves trying to stop Lawson.

Simey returns, seeking retribution on the Gordons for his time in prison. With his cohort Brit, they trick Ned, taking him and Black Beauty captive. Simey tries to sell Beauty to first Waggs, than at a market giving Ned a chance to escape.