When the Pony Pals find a stray cat, they let him stay in Dr. Crandal's animal clinic until they can find him a good home, but when the clinic catches fire, the cat disappears and the Pony Pals have to find him before he gets seriously hurt.
Pam's new job of schooling ponies is taking time away from her own pony, Lightning, and from her friends Lulu and Anna, who are angry that she never goes horseback riding with them anymore.
The Pony Pals are upset when new neighbors move in and put a sheep pen right in the middle of the special trail that connects Pam's backyard to Anna and Lulu's pony paddock, and unfortunately, Mrs. Stewart does not seem to want to work out a compromise with the girls.