Some years after his dangerous ride down the steep mountain to capture the Brumby herd and regain the Colt from old "Regret", Jim Craig (Tom Burlinson), now with a large herd of mountain-bred horses of his own, returns to his home vicinity to take up with his girl, Jessica Harrison (Sigrid Thornton). She is still smitten with him, but opposition from her father (Brian Dennehy) remains as resolute as ever. Further, she also has a rich would-be suitor endeavouring to court her, Alistair Patton (Nicholas Eadie), son of the banker from whom Harrison is seeking a large loan. Before he returns from Harrison's property to his home, Jim meets an army officer seeking quality horses for the remount service on a regular basis.
As the young Patton realizes Jessica's affections remain for Jim, and that she doesn't "give a damn" about him (Patton), he jealously and maliciously recruits a gang to steal Jim's horses. Jim gives chase and in so doing again rides his horse down the steep mountainside. Patton shoots at him; the horse is killed and Jim is injured but manages to recover and resume the pursuit. As Jim had earlier let the wild stallion which led the brumbies loose into the wild again, in a twist of fate, the stallion shows itself from the wild at this crucial moment, and Jim finally trains this horse that has been the enigma of the entire district for decades. As he breaks him in and learns to ride him, they become friends, and together, they catch up to Patton and his gang.
Jessica's father has also relented during this time, seen 'the light' and eventually joins with Jim and his 'rough-rider' friends to hunt down Patton and his gang. Jim Craig gets and wins his man-on-man duel with the chief 'villain', Allistair Patton, and Harrison gives his final approval for Jessica and Jim's alliance and the couple marry.
Tom Burlinson as Jim Craig
Sigrid Thornton as Jessica Harrison
Brian Dennehy as Harrison
Nicholas Eadie as Alistair Patton
Mark Hembrow as Seb
Bryan Marshall as Hawker
Rhys McConnochie as Patton Snr.
Peter Cummins as Jake
Cornelia Frances as Mrs. Darcy
Tony Barry as Jacko
Wynn Roberts as Priest
Alec Wilson as Patton's Croney
Peter Browne as Reilly
Alan Hopgood as Simmons
Mark Pennell as Collins
"Long Way from Home"
"Man from Snowy River II"
"By the Fireside"
"Back to the Mountains"
"Skill at Arms"
"Jessica's Sonata #2"
"Pageant at Harrison's"
"Gathered to the Fray"
"Alone in the Mountains"
"Farewell to an Old Friend" — (Now Do We Fight Them)
"You Should be Free"
Bruce Rowland, who composed the music for this film, also composed the music for the first film.
This film has two alternative endings.
Jim and Jessica return to his mountain cottage where they are married.
An extended end to the film (the DVD release gives both) shows Jim and Jessica being married in the town church