The Quest team visits Canadian logging country at the government's request. While camping, they're met by lumberjacks who warn them to leave, because "the forest holds many dangers--including loup garou".
The next day, Jonny and Hadji are walking with Bandit when they encounter a skunk. Bandit runs, the skunk and the boys follow--and wind up lost. Then they meet White Feather, an Indian (voice of Mike Road). White Feather tells them how to find their camp. He also tells them a "bad wolf" and bad men are at the river, and to make sure they follow his directions. Instead, they investigate the bad men.
The bad men are a crew of loggers who are using hollowed out logs to smuggle gold downriver. And they want to keep this a secret. Jonny and Hadji are captured, and White Feather helps them escape. Then White Feather, and a...friend...help them unmask the werewolf, and put a stop to the smugglers.