Frank Madden buys a ranch near a small town and hires American Indians to help run it, a decision that stirs distrust among the townsfolk and sparks envy from the neighboring ranchers—the three brothers Bert Shipley, Neil Shipley, and Tom Shipley.
An elderly Indian named Matara arrives, revealing he is Madden's grandfather. Madden, who is half Indian, has chosen to pass as white. Matara urges him to embrace his heritage, but Madden agrees to pretend that Matara is his Indian houseman instead, keeping up the deception for the time being.
Before Madden bought the ranch, the Shipley brothers killed the wife of an Indian man named Takola near a dead tree on the ranch. Takola returns, sees Madden, and shoots at him, missing. He tells Madden what happened at the tree. Madden dismisses the tale and tells Takola to forget the incident and stay away from the ranch.
Romance blooms between Madden and Catherine Cantrell, the daughter of the local land agent who sold him the ranch. Meanwhile, one of the Shipley brothers cheats on his wife with a young Indian woman named Taini, Madden's ally, which stirs jealousy and suspicion among Madden's adversaries.
One night in town, a Shipley brother spots Madden and taunts him in a public confrontation; Madden refuses to turn around, inviting him to shoot him in the back with the whole town watching. The moment never comes, and Madden walks away.
Takola tracks the same Shipley brother returning to the ranch and shoots him in the back. The next day, the remaining Shipley brothers return with their brother's body and accuse Madden of murder. A mob gathers in the street, seeking to lynch him, but the Sheriff intervenes and arrests Madden, while the Shipleys rally the townsfolk to seize him anyway.
As tensions flare, Taini steps forward and claims Madden was with her all night. The lie convinces the mob to release him, and Catherine, torn between trust and doubt, initially chooses to distance herself. Madden heads to recover his belongings from the jail while the town fumbles through its judgments.
Then Madden’s grandfather, Matara, arrives in a wagon, carrying a pistol he intended to use to defend Madden after hearing he was jailed. The Shipley brothers open fire on Madden, Matara, and Taini; Taini is wounded, and Matara is shot in the chest. Madden seizes the pistol and shoots both attacking Shipleys, while Matara dies in Madden’s arms.
In the aftermath, Madden reveals to the town that Matara was his grandfather and that his American Indian name is Neola. He decides to sell the ranch and move on, and the Sheriff notes that Takola had helped locate the truth and will see that Takola gets a fair trial. The Sheriff also expresses hope that Madden might return someday. As Madden readies to ride away, Catherine arrives in traveling clothes, and the two ride off together toward an uncertain but hopeful future.
