Gaseous vapors from an ancient mine cause the birth of a huge squealing embryo that is taken to the laboratory of a local mad doctor where it grows into a monstrous 8-foot mutant sheep. Meanwhile, the racist mayor of an historic wild west tourist town attempts to thwart the efforts of a black man buying real estate by attempting to lynch him! Plans go awry, however, when the giant, wool-covered Lamb from Hell escapes from the doctor's lab and starts waddling across the countryside. Spewing an orange phosphorous gas, the semi-prehistoric Godmonster of Indian Flats terrifies the population, blows up a gas station, and even "dances" with a deranged hippie chick until it's lassoed by cowboys. The mayor then startles everyone by putting "the damaged mongoloid beast" on display as "The 8th Wonder of the World!"