After breaking his leg, Dr Gordon has to enlist the assistance of a new young doctor to carry on his duties. However, things do not go well as the new doctor treats Beauty cruelly and refuses to assist an elderly patient.

During a storm Squire Armstrong believes he was attacked by Black Beauty and promises if it happens again, Beauty will be destroyed. Jenny, Kevin, and Ned try to keep the horse contained but Beauty has a equine friend she must get to.

Mr. Duncan, an old acquaintance of Dr. Gordon, asks for a letter of recommendation and is refused. Duncan vows revenge and hypnotizes Jenny to fear Black Beauty. Everyone is mystified until Albert starts to learn the truth.

Simey returns, seeking retribution on the Gordons for his time in prison. With his cohort Brit, they trick Ned, taking him and Black Beauty captive. Simey tries to sell Beauty to first Waggs, than at a market giving Ned a chance to escape.

Dr. Gordon and a syndicate of farmers plan to buy Parsons field as a refuge for old horses, but Kevin and Albert stumble across a dastardly plan to foil their good intentions.