Henry's attempt to prove the Black Stallion's Arabian lineage has nearly fatal results for the Black Stallion, Alec, Nicole, and Henry himself.

The Black races against a horse that bears a striking resemblance to him.

When Henry accidently buys a stolen horse in an auction, Henry and the Black are banned from racing, pending an investigation. Meanwhile, Alec must put the Black up for auction as bait in order to clear Henry.