In 1869, lawyer John Reid returns home to Colby, Texas via the uncompleted Transcontinental Railroad, managed by railroad tycoon Latham Cole. Unknown to Reid, the train is also carrying Tonto and outlaw Butch Cavendish, who is being transported for his hanging after being captured by Dan Reid, John's Texas Ranger brother. Cavendish's gang rescues Butch and derails the train. Tonto is subsequently jailed. Dan deputizes John as a Texas Ranger, giving him a silver star badge that had belonged to their late father, and with six others they go after the Cavendish gang. Cavendish's men ambush and kill their pursuers while Cavendish slays Dan with his dagger and devours his heart as revenge for his imprisonment. Tonto, who has escaped from jail, comes across the dead men and buries them. However, a white spirit horse awakens John as a "spirit walker", and Tonto explains John cannot be killed in battle. Tonto also tells him Collins, one of the Rangers, betrayed Dan and is working with Cavendish. As John is thought to be dead, he wears a mask to protect his identity from enemies. Tonto gives John a silver bullet made from the fallen Rangers' badges and tells him to use it on Cavendish, whom he believes to be a mystical beast called a wendigo.
