Paul and Maureen ride the Phantom and play with Misty as much as they can. They realize that Misty is always happy to be around them, but the Phantom seems to be happy only when they ride her fast along the beach. At other times they catch her looking out over the fence, starting toward the sea and Assateague. Paul thinks she is sad to see her wild friends still running free, while Maureen thinks she will eventually forget her previous life, especially if they run with her every day. They plan to ride her as much as possible before the following July. She is very fast, and they hope they can enter her into the Pony Penning Day race as a worthy competitor for Black Comet. Talk of the Phantom’s speed spreads through Chincoteague, and the village is divided between those who believe she is sure to win and those who think she is still too wild and won’t be able to handle the crowds on race day.

In April, the fire chief appears at the Beebe house, and Grandma invites him for dinner. After gorging himself on ham, oysters, and gravy, the fire chief sits back, lights a cigar, and asks Paul and Maureen a question.