Billy the Kid learns that someone in Red Rock is impersonating him, causing a warrant to be issued for his arrest. On the way there he and Fuzzy Jones witness a hold-up by a gang of outlaws led by Kate Shelly and Billy decides to join the gang in order to clear his name. Kate sends Billy to rob the stagecoach and then has the sheriff tipped off so that Billy will be caught. Billy captures two of Kate's gang and learns about the tip-off, and tells Kate he couldn't pull off the robbery because the sheriff had been informed. Kate gives Billy the assignment of helping her rob the Red Rock Bank and,this time, Billy tells the Sheriff but he also warns Kate not to go through with the robbery because he knows she will be caught. But Kate, suspicious of Billy, has him imprisoned and rides on over to Red Rock to rob the bank. Kate is wounded in the hold-up and flees with the Sheriff in hot pursuit. Meanwhile, Billy has escaped and arrives in time to save Kate from falling from her horse. He takes her to his hideout and is trying to help the wounded girl when her chief henchman, Dillon , shows up.
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