J. A. Marsden aims to take over the California-Yucatan Railroad with the aid of his henchman El Lobo. The rightful owners, Joyce and Phillip Andrews, naturally object. Their parter, Don Manuel Vega summons his nephew, James Vega, to help them as he is the great grandson of the original Zorro, Don Diego de la Vega. He is disappointed, however, to find that his nephew is a foppish dandy.
Nevertheless, James Vega installs himself in the original Zorro's hideout and adopts the Zorro identity to defeat Marsden and El Lobo. This Zorro uses twin pistols and (like the original Zorro) a whip as his main weapons of choice, rather than a more traditional sword.