Captain Woodrow F. Call, having just buried his friend Augustus McCrae near Lonesome Dove in Texas, plans to return to his ranch, signposted as "Hat Creek Cattle Company", in Montana.
Call sends word to Newt Dobbs that he intends to meet him in Ogallala, Nebraska at the home of Clara Allen, with a herd of wild Mustangs that he hopes to drive north to interbreed.
Walker also hires a group of Mexican vaqueros, who are led by a woman known as Augostina Vega, who harbors a resentment against Call for some unknown reason.
While on the trail, however, Isaac is killed by the outlaw Cherokee Jack, and is buried with a headstone dated "Gone to glory 4 August 1878".
When the children become sick, Augostina heads off to Fort Wallace for medicine, but is forced to shoot her army escorts when they attempt to rape her.
After his return to Montana, having left his 'wife' with Clara, Call is disturbed to find Newt working for Dunnigan, believing that he is only there because of his young wife.
But Newt is determined to honor his debt to Call's neighbor, and later confronts his father and tries to explain why he was unable to finish his mission.
Newt, now distanced from Call, becomes uneasy with Dunnigan because of his campaign to drive the other ranchers of the region out of business, but is reluctant to part ways because of the debt he feels he owes him.
Added to this is the pressure being placed on Newt by Dunnigan who starts to treat him "like a son", and his wife, who begins showing an increased romantic interest in him.
They are observed by Dunnigan, who secretly hires Cherokee Jack to stir up trouble between The Alliance, and unaffiliated groups including free-rangers and homesteaders.
Call rounds up all the men he can, and attempts to stall Dunnigan long enough for reinforcements to arrive from other unaffiliated groups.