Every year the Chincoteague fire department rounds up the wild ponies of Assateague Island and holds an auction to thin out the herd. The young children set out to raise enough money in hopes that the Phantom will be caught in this years round up. They soon realize they will get more than they bargained for when the Phantom has a surprise for everyone: a foal named Misty.

• Radnitz/Mattel Productions
• 20th Century Fox
• David Ladd
• Arthur O'Connell
• Pam Smith
• Anne Seymour
• Duke Farley