Billy and his hounds become well-known as the best hunters in the Ozarks. Billy's grandfather makes a bet with Rubin and Rainie Pritchard that Old Dan and Little Ann can tree the legendary "ghost coon" that has eluded hunters for years. After a long, complicated hunt, Old Dan and Little Ann manage to tree the raccoon, but having seen how old and smart the ghost coon is, Billy cannot bring himself to kill it. Billy tries to stop the Pritchards from killing the raccoon, leading to a fight with Rubin. The Pritchards' dog Old Blue joins the fight, provoking Old Dan and Little Ann to attack Old Blue to drag him away from Billy. Rubin tries to drive Billy's dogs away with an axe, but trips, falls on the blade, and dies. Billy is deeply troubled by the tragic turn of events, but does not regret his choice to spare the ghost coon.