- General Wooden is injured by dog soldiers and dies. Daniel talks with Sgt. McKay and the non-violent Indians are let free. Hank takes over as sheriff temporarily. Daniel runs for sheriff and wins. Sully and Cloud Dancing work for peace.
- Believing that Sully (Joe Lando) is responsible for the Indian raids in town, Hank (William Shockley) publicly accuses Dr. Mike (Jane Seymour) of lying about Sully's death, names himself sheriff and sets out to bring Sully to justice.
The Army sends General Wooden (guest star Tom Dahlgren), a noted Indian fighter, to end the disturbances, but he is badly injured in a raid led by the renegade warrior Black Moon (guest star Gregory Norman Cruz).
Daniel (guest star John Schneider) persuades Sgt. McKay (guest star David Beecroft) to allow the Indian prisoners to proceed peacefully to the reservation. The move infuriates Hank with near disastrous results.
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