A regiment of cavalry surprises the Sioux and puts them to flight. Colonel Graham and others personally attend to the wants of the wounded, and the Colonel finds a wounded squaw in one of the tepees, with a little girl crouched in terror by her side. The Colonel sends for a canteen, gives the squaw water and promises to look after the child after the mother dies. The Colonel takes the child home, where she is raised. Fifteen years pass and Neehla, the Indian girl, is educated at Carlisle, where she purchases some beautiful Indian dresses. She returns to the Colonel's home and soon becomes the object of admiration to the Lieutenants Stark and Lee. Stark later proposes and is accepted. Old Chief Gray Eagle, of the Sioux warriors, jumps the reservation and commits outrages. Colonel Graham receives orders to ride against the Indians and to punish them. Neehla learns for the first time that Gray Eagle is her grandfather and blood begins to tell and her sympathies turn to her native race.