Set in the Old West, Peaceful Gulch is not so peaceful as Morgan (Don Harvey) and his roughnecks have run the sheriff out of town. In attempt to bring normalcy back to their little town, some of the sheriff's posse concoct a scheme to trick Morgan and his hombres into thinking that there are three famous marshalls headed into town to bring back law and order.
The Stooges, mistaken for the three famous marshalls, are asked to stop Morgan and his men from stealing money in an old house haunted by the ghost of a headless Indian Chief (John Merton). The trio soon find that the Indian Chief is none other than one of Morgan's men. Shemp knocks out the headless henchman and dons the costume for himself. He soon runs into Moe and Larry who have been captured by Morgan. Still disguised, Shemp knocks out everyone in the room with his hatchet and the boys are heroes once again.