Merlin the Magic Mouse and his sidekick Second Banana ride a train to their next show in Powwow City. However, they don't bring tickets, and the conductor catches the stowaways and kicks them off the train in the middle of an Indian territory. Merlin apologizes to Second Banana about the situation and decides to have a rest meal before walking to Powwow city. A dopey American Indian, Lo, notices Merlin preparing a meal with his magic hat, and wants the hat for himself. Merlin sees that Lo is shooting arrows at him and hides behind a rock. Lo still manages to find Merlin, and steals his hat. Lo pulls out a rabbit to eat, but the rabbit bites Lo in the nose.
Lo continues to chase after Merlin but is tricked into falling off a canyon and running on a conveyor belt which Lo calls a "portable warpath". Merlin and Second Banana then hide and walk off in a teepee tent, and Lo removes the tent to uncover the two mice. Merlin decides to "peacefully surrender", but first he must make Lo "smoke" a peace pipe, which is just a stick with dynamite attached to the end of it. Despite outsmarting Lo and successfully reaching their show, Merlin and Second Banana are forced out, as their audience are Indians too.
