While traveling with his father, young Alec becomes fascinated by a mysterious Arabian stallion who is brought on board and stabled in the ship he is sailing on. When it tragically sinks both he and the horse survive only to be stranded on a desert island. He befriends it, so when finally rescued, both return to his home where they soon meet Henry Dailey, a once-successful trainer. Together they begin training the stallion to race against the fastest horses in the world.

Harvey Cheyne is a spoiled brat used to having his own way. When a prank goes wrong onboard an ocean liner Harvey ends up overboard and nearly drowns. Fortunately he's picked up by a fishing boat just heading out for the season. He tries to bribe the crew into returning early to collect a reward but none of them believe him. Stranded on the boat he must adapt to the ways of the fishermen and learn more about the real world.