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The thoroughbreds invoked by the title are a stray colt and the teenaged boy (Jimmy Lydon) who raises the animal. Despite the objections of his miserly uncle (Arthur Hohl), Lydon cares for the seemingly worthless colt with the help of a crusty but kindly groom (J. M. Kerrigan). The boy discovers that the colt actually belongs to the wealthy father of his girl friend (Joan Brodel, later known as Joan Leslie), but is hesitant to return the horse he has grown to love. The right thing is done at last, and a happy ending results. Two Thoroughbreds avoids wallowing in sentiment, thanks to the carefully controlled performance of Jimmy Lydon, whose energies were later shifted to the less demanding Henry Aldrich series at Paramount.