A group headed by a man known as El Lobo works for a profiteer named Marsden, and Marsden is determined to gain control of the California Yucatan Railroad.

Fortunately, the bomb misses the train; Zorro uses a rifle to shoot at the plane, and the damaged plane heads back to headquarters; Joyce and Philip notice that Zorro rides El Rey, the horse that ran away from James.

Zorro regains consciousness and jumps down into the cellar just as the bomb explodes; Zorro rides from Ocilla Junction with El Lobo and his men in pursuit, but Zorro gets away.

Zorro frees himself just before he would have been run over by the train; the train gets through the junction safely; El Lobo tells Marsden that the railroad has begun working once again.

Renaldo appears in time to prevent Zorro's mask from being removed; the man who stole the deeds gives them to another man who delivers them to El Lobo.

James escapes from the crashed plane with the deeds; Joyce finds the deeds at the mailbox, left by Zorro; El Lobo takes Philip and Joyce captive.