The enthusiasm of a young boy ignites as Twelve-year-old Billy Coleman finds himself captivated by a profound interest in coon dogs and the adventurous life of coon hunting. Despite the financial struggles looming over his family's dreams, the price of these prized hounds seems insurmountable. Undeterred by the challenge, Billy longs for the impressive dogs owned by others, including the well-respected Mr. Kyle. His determination takes shape when Billy's father casually informs him about a Bluetick pup available at his grandfather's store. Driven by this revelation, he rushes over, only to find that the Pritchard brothers have schemed to purchase the dog before him, setting up a cruel taunt.
Guided by his wise grandfather, who advises him that earning the dogs takes hard work and perseverance, Billy commits himself to a heavy workload. After an intense period of labor, he finally gathers the fifty dollars needed to buy two puppies. Yet, just as he is ready to make his purchase, he discovers that the price has dropped by five dollars per pup, leaving him with a mix of disappointment and resolve. He orders the dogs, but soon learns they have been sent to Tahlequah, Oklahoma, a daunting thirty miles away, as mail services cannot transport live animals. Undaunted, Billy sets out under the cover of night on an adventurous journey to retrieve his new friends. He uses the remaining ten dollars to treat his family with thoughtful gifts — overalls for Papa, a lovely dress cloth for Mama, and sweet treats for his younger sisters.
As he triumphantly collects the puppies, a terrifying encounter with a cougars reveals the dangers that lay ahead. Billy bravely conjures a fire to chase the beast away, finding the courage to press on. During his travels through the beautiful Ozark terrain, he discovers a heart carved into a tree, symbolizing love between Dan and Ann, which inspires him to name his puppies Little Ann and Old Dan. Determined, he sets out to train them to become the most esteemed hunting duo in the region. With a worn coonskin as a guide, he teaches them the ways of the hunt, and during their first night out, they spot a resourceful raccoon, only to have the wily creature outsmart them by crossing a river. After a vigorous chase, they ultimately corner the raccoon up a grand tree, leading Billy to attempt to fell it with his trusty hatchet. When this proves fruitless, he prays for help, and miraculously, a gust of wind brings the tree crashing down, earning Dan and Ann a legendary reputation among hunters in the Ozarks.
A chance encounter with the Pritchard brothers at grandpa’s store leads to tales of a ghost coon that no dogs can catch. The brothers' teasing pushes Billy to defiantly wager that Dan and Ann can hunt this elusive target. On the agreed day, the dogs excel, successfully locating the ghost coon in an abandoned mill. Yet, in an act of sportsmanship, Billy decides against killing the creature, earning scorn from the Pritchards.
Tensions escalate further when Ruben Pritchard’s dog, Old Blue, becomes embroiled in a fierce altercation with Dan and Ann. In the chaos, Billy attempts to intervene with his hatchet but inadvertently causes Ruben’s tragic accident. Heartbroken, he vows to abandon hunting altogether. Shortly after, invitations to a Sunday family dinner feature talk of an upcoming prestigious coonhunt competition. Although hesitant, Billy ultimately accepts his grandfather's encouragement to participate. When he arrives, he finds himself matched against formidable challengers like Mr. Kyle and his pair of Treeing Walker Coonhounds, raising the stakes.
As the stormy night presses on, Dan and Ann’s successful hunt culminates in an exciting finale. Unbeknownst to them, however, Grandpa injures his ankle while moving through the woods. A frantic search ensures when Billy realizes his grandfather is missing. Meanwhile, Dan and Ann bring home three raccoons in one go, leading to an exhilarating hunt. When Billy eventually finds Grandpa, he calls off the dogs, shifting their focus to caring for the injured patriarch.
The following day unfolds with the pivotal awards ceremony. Initially, it seems that Mr. Kyle will take home the top honors, but in a surprising and generous twist, he chooses to present the award to Billy, advising him to stay humble as he’ll surely have competition next year. As the exciting hunt winds down, Billy and his loyal dogs venture deeper into the wilds, where an unexpected challenge awaits in the form of a fierce mountain lion. In a heroic struggle, Billy retrieves his hatchet just in time, but not before Old Dan suffers mortal wounds in the scuffle. With Dan's life hanging in the balance, Billy carries him back home, devastated as Dan passes away from his injuries.
Shortly after the tragic loss, Little Ann also succumbs to grief and follows Dan to the grave, resting beside her beloved companion by a tranquil riverbank. With Billy's family preparing for a move to Tulsa for better opportunities, they decide to use their coonhunt winnings to fund their transition. On the eve of their journey, Billy walks by the river, where he discovers a beautiful red fern growing between the graves of Dan and Ann. According to a cherished American Indian legend, this special plant can only sprout under the guidance of an angel. This revelation brings him a deep sense of peace and closure. Ready to embrace their new life, Billy steps forward with his family, carrying the weight of cherished memories while being at peace with the bittersweet fate that has unfolded around him.
