The Saddle Club befriend Raffael and his mother, both itinerant workers, who arrive at Willow Creek with Raffael's beautiful horse, Diablo. Then Raffael is accused of horse-theft by a local farmer. Melanie and Ashley set up a Pine Hollow news sheet complete with gossip column. Lisa begins to like Raffael. Diablo comes up missing and the girls, Phil, and Raffael set out to find him.