Lyric discussion by debbieann 

per this youtube video, Michael Martin Murphy states that it was about a dream he had about a magical horse

youtube.com/watch

@debbieann Murphy also ties the horse into Christian prophecy. The Bible depicts Christ as riding to His triumph on a white horse, so Murphy relates the final ride on Wildfire as being away from the trials and tribulations of this fallen world and into the glory of heaven. He had been told the legends of the ghost horse as a child, but the dream he had brought the concepts together in song.

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