Katherine “Katy” McLaughlin has dreams of running her father’s Wyoming horse ranch, but her father, Rob, has other plans. He is grooming her older brother, Howard, to take over the ranch and sends Katy away to a private school where she feels like a misfit. Rob is having trouble understanding his daughter as she continually defies his authority to follow her own path.
When she comes home for the summer, Katy is met with her father’s disapproval because she did not finish a writing assignment at school, but is welcomed by her mother, Nell, and Howard. Howard wants to attend college instead of running the ranch, but is afraid of what his father would think if he told him. While out riding, Katy finds a black wild mustang, and feels a connection with the horse. She sets off to tame “Flicka” (Swedish for little girl), despite her father’s protests.
Flicka is captured during a roundup, and Rob asks Katy not to go near Flicka. Determined to prove she can run the ranch, Katy starts training Flicka at night. Flicka slowly warms to Katy and the two develop a close bond. However, Rob sells Flicka to the rodeo, leaving Katy depressed. Nell and Howard are angry at Rob about making the decision without including them. Howard then stands up to his father and says that he does not want the ranch, but Rob doesn’t want to take Flicka back. In turn, Howard and Nell refuse to help Rob with the ranch, which he is now considering selling, since Howard does not want it. Katy starts writing about Flicka so that she can escape her pain.
At the rodeo, Howard and Katy enter the competition that Flicka is being used in, hoping to get the horse back. Flicka runs from Katy until she calls her name. Rob tries to intervene, and Katy freezes at the sight of him. Howard boosts his sister onto Flicka, and the two escape. After the two escape, Katy suddenly becomes lost in the mountains, and allows Flicka to make her way towards the ranch. The family reconciles and searches for Katy as a fierce thunderstorm moves in. Katy and Flicka are attacked by a mountain lion. Flicka bolts, throwing Katy to the ground and the lion goes to attack her. Flicka protects Katy, but is badly wounded in the process. Katy binds Flicka’s wounds and refuses to leave her in the storm, resulting in her developing a fever.
Rob finds the two and brings a delirious Katy back to the house. As her fever spikes, Katy calls for Flicka as Nell tends to her. Rob thinks Flicka is mortally wounded and believes she should be put down. Overhearing the argument, a dazed Katy stumbles into the room and gives her father permission to “shoot us now”.
Rob goes outside and starts to cry as he finally understands his daughter’s feelings – her pain and what a prideful, angry and selfish person he’s been to his family all of these years. A gunshot is heard and Katy bursts into tears, thinking Flicka is dead. The next morning, Nell finds Rob walking back to the house, supporting the injured Flicka. She runs outside to help and finds out that the gunshot was actually him shooting at the mountain lion. Both are stunned that Flicka is not dead, and decide not to put her down.
Katy starts to feel sick and she begins to recover. As he watches over his daughter, Rob reads the story that Katy had been writing about Flicka, eventually typing the story and sending it to the school so that Katy can pass for the year. When Katy wakes from the fever, she and Rob reconcile and he takes her to see Flicka. Rob apologizes to Howard and gives his son his blessing and Howard prepares for college. As a family, they decide to not sell the ranch, making it both a working ranch and a refuge for wild mustangs.
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