A reward of $500 is offered for the capture of Broncho Billy, a desperate outlaw. One day, while hiding near the home of a rancher, Broncho sees a little girl burying her broken doll. Before she completes the ceremony, her mother comes out and takes her into the house. That evening after she has been put to bed, the little girl steals out to finish burying her doll. She falls over a ledge, and Broncho, who is sleeping nearby, is awakened. He picks her up unconscious. Upon taking her home the mother offers him a cot to sleep on. While Broncho sleeps the rancher comes home and recognizes him. He is intent upon getting the $500 reward, but his wife protects the rescuer of her child and Broncho is allowed to escape.
Broncho Billy becomes enraged when a stranger comes to town and wins the affections of his sweetheart. On the night of the wedding Broncho Billy "shoots up" the church, wounding the bridegroom. He then escapes across the border, after leaving a note to his rival telling him he will finish the job on Christmas night. On Christmas night Broncho Billy returns and intercepts the man who is to be Santa Claus at the church exercises. He dons the costume and gains entrance to the church with the intent of carrying out his threat. He suddenly relents and decides to let his rival go unharmed as a Christmas present to his old-time sweetheart.
