Orphaned Tommy Ryan is informed that the money from his father's estate has run out, and he will have to leave the Holbrook Military Academy. Bunting, the dour superintendent,forces Tommy to leave his dog, Skippy, behind. But Skippt breaks away and catches up with Tommy. Tommy reads a newspaper story of a dog-show to be held in High Hills with a prize of $15,000. Reporter Bob Clayton, who is to cover the show for the New York Chronicle, picks up Tommy and Skippy and brings them to High Hills. In High Hills, Skippy darts across the street after a Chihuahua dog. Tommy runs after him and is knocked down by a station wagon driven by Dave Farmer and Skippy leaps at Farmer. Doc Ramsey, a vet, quiets Skippy and takes Tommy to his offices, while Bob and Lorna, Ramsey's daughter,follow. Policeman Manning appears investigating Farmer's complaint that Skippy is a killer-dog, but Ramsey assumes responsibility for the dog's good behavior.