Freddy's attempts to catch the gang extorting money from Centerboro's city folk are hindered by a headless horseman.
(Animal Bureau of Investigation) to search the countryside, and immediately discovers a bull who has been damaging farms and crops.
Freddy's perfume-filled water pistols turn the bull Percy into a smelly laughing stock.
Since Freddy is the president of his animal bank, the town's human banker vouches for him: The Bean cow sisters discover that Percy is the father who abandoned them as calves; the bull is unmoved.
Freddy and Jinx the cat lie in ambush at the money drop site, but are terrified by the appearance along a dark road of a headless horseman.
Although Freddy is in disguise to avoid arrest, he and Jinx intercept a new member coming to join the gang.
The circus is held, and Samuel Jackson's fake medium makes the animal's enemy Mrs. Underdunk look foolish.
The animals storm the cave and, with the help of Uncle Ben's atomic station wagon, also trap the headless horseman.
There are 32 black and white, pen and ink drawings by Kurt Wiese, endpapers, and a full color cover, both depicting scenes from the book.
Reviewing Freddy and the Dragon, Kirkus Reviews (Oct. 20, 1958) said "The remarkable Pig tracks down a ruthless protection racket... he also manages to teach a contrite bull how to behave like a gentleman... To be published posthumously, this Freddy episode is in the style of the several dozen which precede it — sometimes funny, often slangy, and caught in a balance between parody and two-gunned adventure — a balance that over the years has had a consistent appeal."