Tex arrives on the Parker ranch on Christman eve and is given the job of being Santa Claus. Also dressed as Santa Claus, Blackie robs Parker and kills a man. When Tex is arrested for the murder, he escapes and joins up with outlaw Becker and his gang. He finds Blackie's Santa Claus suit but is soon made a prisoner.

Tex has been sent to investigate the theft of government provisions along the border. Kildare is the leader of the outlaw gang and has his men posing as Indians. He has already killed the incoming Marshal and assumed his identity. When Tex asks too many questons, he plans to get rid of him also.