Max fires Red for neglecting his duties when a fire starts in the barn, endangering all the horses.
City girl Deborah proposes to Max and he accepts.
The girls arrange a "Fright Night" for the annual costume party but are really terrified when they encounter a ghost and Lisa and Carole disappear.
Kristi gets a "big head" when told she is a natural horse whisperer and is going to be a part of a television show, but the Saddle Club and a horse make her see sense.