Children of Dreams was the second original operetta written especially for the screen by Oscar Hammerstein II and Sigmund Romberg.

The film had the misfortune of being released at a time when the public had grown weary of musicals and did poorly at the box office.

[2] One day, Molly Standing (Margaret Schilling) is picking apples in her father's apple orchard in California, with her friend Gertie (Marion Byron), when they meet two boys, Tommy Melville (Paul Gregory) and Gus Schultz (Tom Patricola).

She returns to the United States to sing at the Metropolitan Opera House in New York City, where she is again a great success.

Before they leave on their honeymoon, the doctor (Charles Winniger) informs Molly's manager and Tommy that Schilling has lost her voice and will never sing again, except perhaps, a lullaby.