In the spring after Billy’s hounds died, his family prepares to move to town. His entire family is excited, but his mother is excited more than the others are. Billy’s father is more animated than he has ever been. Once everything is packed and loaded, Billy asks his father if he can visit his dogs’ graves once more before he leaves. His father consents.

When Billy reaches the gravesite, he is astounded to find a beautifully luxuriant red fern growing between the two graves. He remembers an Indian legend he had heard as a child. The story concerns the disappearance of two small children. According to the legend, the children died in a blizzard. Their bodies were discovered during the spring thaw with a beautiful red fern growing between them. The legend says that red ferns were only planted by angels and grew on sacred ground. Billy thinks the presence of the red fern is miraculous.

Billy yells for his mother; she and the rest of the family run up the hill to him. They, too, are startled by the sight of the red fern and believe that it signals sacred ground. His mother tells him she has never seen a red fern before. His sisters believe the plant was placed between the graves by an angel. Billy’s father suggests that God placed the red fern between the graves to help Billy cope with the loss of his dogs. Billy agrees with his father, stating that he finally understands and accepts the deaths.

Billy’s family leaves the graves to return to the wagon and give Billy more time alone. Billy takes one final glance at the graves and notices that both of them are covered with beautiful mountain flowers. He imagines that the blossoms are dancing in the slight breeze that flows in from the mountain. Before he leaves, he removes his hat and says a final good-bye to his dogs.

In Billy’s final expressions of love to his dogs, he assures them that he loves them. He tells them that God will reward them with eternal life in heaven and that he will never forget them. Then he slowly makes his way down the hillside and rejoins his family. As his family drives away, he looks back toward their old home. He sees Samie, the cat who ran away after consistently becoming ensnared in his trap, tramp through the abandoned yard. His gaze covers the entire farm until his mother interrupts his solitude to tell him the red fern is still visible from this distance. Billy turns his head and sees the red fern beautifully decorating the hillside.

The memories prompted by the hound Billy rescued in the streets conclude. Now an adult, he indicates that he has never returned to the Ozarks since moving to town decades ago. He longingly suggests that he would love to return to the area and recapture the feelings of his childhood. He states that he would enjoy walking the old woods, looking for his abandoned lantern and ax, and recalling his many adventures with his very special hounds.