In 1849 California, Huckleberry Hound Daws Butler rides west on his horse in search of a place to start a country farm. He discovers the small town of Two-Bit, which is menaced by the outlaw brothers, the Dalton Gang consisting of Dinky Dalton Allan Melvin, Finky Dalton Pat Fraley, Pinky Dalton Charlie Adler, and Stinky Dalton Michael Bell. Stinky is apprehended by a hand and sentenced to prison by Judge Tumbleweed Flopner.
The Daltons steal Huck's belongings and coerce him into a game of poker, with the stakes being a gold nugget Huck carries for his belongings. Huck accuses the Daltons of cheating, so they challenge him to a boxing match, and Huck Daws Butler wins. He then goes to Quick Draw McGraw and Baba Looey's bank to deposit his gold and wins a prize of his choice. He selects a fountain pen, drawn to its blue ink. The Daltons rob the bank, stealing the nugget and the pen. Mayor Hokey Wolf calls an emergency town meeting and hurriedly appoints Huck as Two-Bit's new sheriff.
Sheriff Huck takes on the Daltons and captures them after a tense struggle. Stinky breaks out of prison with the Bit-2 News and reporter Magilla Gorilla Allan Melvin covering the sensational story. Huck receives a letter from Stinky and is drawn into a gunfight challenge; the town resists helping him, with many fleeing to Tahiti.
Stinky fails to kill Huck, so he turns to a cunning ruse, breaking his brothers out of jail disguised as their grandmother. Despite his horse's attempts to rescue him, Huck gives chase until the Daltons strap him to a rocket and launch him into the sky, leaving him there as the crowd mourns what seems like a fatal blow. The Daltons seize Two-Bit, renaming it "Daltonville," and drive the townsfolk out aboard a freight train, leaving the townspeople to blame themselves for Huck's presumed death and the loss of their home.
After a recap, the rocket crash is shown to have occurred at a tribal community of Native American dogs. Huck survives, but suffers amnesia and is found by the chief's daughter, Desert Flower B.J. Ward. The two fall in love, and Huck proposes marriage, but first he must pass a two-part test to win the chief's blessing. The first test is a game show that Huck wins, despite the chief meddling with the buzzer. For the second test, Huck must wrestle Chuckling Chipmunk Howard Morris, the tribe's strongest man and Desert Flower's rival suitor. Huck loses the bout but saves Desert Flower when she falls into a river, earning the chief's blessing. Just as the ceremony is about to begin, Huck's horse returns and helps restore his memory, reminding him that the Daltons remain at large and also revealing that his real name is Bob. Huck vows to return for Desert Flower and heads off.
Huck then finds the townsfolk of Two-Bit working at a circus and urges them to help reclaim their home. He recruits a projectionist and showgirl, Rusty Nails B.J. Ward, to help set up a plan using special effects to pose as a ghost that will frighten the Daltons away. Rusty shows a film to the Daltons warning that Huck's ghost will arrive in Daltonville on the "midnight ghost train." The Daltons tremble, except for Stinky, who refuses to be intimidated. Huck arrives aboard the train and uses the ruse to terrify the gang, though they refuse to surrender. The Two-Bit townsfolk chase them into the state prison, where Huck reveals the ruse and is celebrated for bringing the Daltons to justice.
The tale closes with the narrator recounting what happened to Huck and the townsfolk after they ride off into the sunset.
