Red Dog doesn't realize John has died so he goes out and looks for him. He meets Nancy and then they have ice cream. He spends time in a caravan park with Nancy and meets Red Cat. They eventually befriend each other despite their differences. Red Dog is suspected of having heartworm and has treatment for it. Red Dog returns to the caravan park, where he is noticed by the caretakers. The Cribbages are portrayed as bad people, with Mr. Cribbage described as having a Hitler-like mustache. They decide to throw Nancy out because she has let Red Dog stay despite the park's having a "no dogs" policy.
When other locals learn that the Cribbages are trying to get rid of the popular dog, they threaten the couple until they leave. Red Dog is poisoned by strychnine and has to be put down. Bill and Piotr (Peeto) find him and don't want him to suffer, but in the end they cannot shoot him. They take him to the vet who had treated him before. He gives the dog a painkiller and eases his death. The locals hold a funeral for Red Dog and a monument for him is built in Dampier, Western Australia.