Singing cowboy Gene Autry is out of work and trying to land a new gig, even pawning his guitar to make ends meet. In a chance meeting with Angie Burke, a former rodeo sharpshooter who now works for the wealthy ranch owner Estrellita Estrada, she proposes that he ride across the border to El Sombrero Grande, Estrellita’s ranch. Gene heads south into Mexico and soon finds trouble brewing: a tense clash between James Garland and the rancheros who lease part of the land, as Garland pushes them off the property. Gene intervenes, halting Garland from firing on the unarmed men, and Garland offers him the job of ranch foreman while declaring his plan to marry Estrellita.
On the way back to the ranch, Gene gives a lift to Don Luis Alvarado, Estrellita’s godfather, who has been brought in to replace Felipe Gonzales, the longtime hand who has tended the ranch all his life. Though Gene doesn’t want to displace Felipe, he accepts the post to support the rancheros, who are led by Juan Vazcaro. He also hires Felipe as his translator, creating a delicate alliance between past loyalties and new leadership.
Gene travels back to the United States with the intent to bring Estrellita back to her Mexican ranch, and Angie accompanies them across the border. Angie's resistance to the plan clashes with Gene and Don Luis’s determination, so they take drastic action and kidnap Estrellita to return her to El Sombrero Grande. Back in Mexico, Garland plots to sell the ranch to hard-nosed land speculator Ben McBride, who pressures Garland to evict the rancheros before they can pay their back rent. Realizing the danger, Gene secretly organizes a bold cattle drive to support the rancheros and upend Garland’s scheme.
As Gene and Juan Vazcaro head toward a meeting of the rancheros, Garland’s men open fire. The two manage to capture one attacker and uncover that the rest of the rancheros are under siege. A young boy named Tico inadvertently reveals the plans for the cattle drive to Garland, tipping the antagonist off. Meanwhile, Estrellita begins to see the value in taking charge of the ranch, though she still wishes to return to the United States.
The rancheros depart on the cattle drive, but Garland and McBride ambush them at a treacherous mountain pass. In the ensuing gunfight, the brave young [Tico] is killed, and his loss deeply affects everyone at the ranch. The rancheros bring the boy’s body back, and Garland maintains his innocence, even as Estrellita recognizes his true intentions and orders him to leave the country. She then asks Gene Autry to help her learn to manage the ranch and assume responsibility for its debts. After a period of rebuilding trust and settling old accounts, Estrellita’s debts are absolved, and Gene leaves Mexico with a promise to return, leaving the door open for a hopeful future on Estrellita’s land.
