Based on the play A jó tündér by Ferenc Molnár, the film is about a small-town girl who tells a fib to a wealthy businessman, which then creates complications.

Louise Ginglebusher (Deanna Durbin) is a young woman from the small town of Cobleskill who comes to New York City to make it in show business.

In a café, she's befriended by a kindhearted but ornery waiter, Wechsberg (William Bendix), and meets a bearded struggling attorney, George Prescott (Tom Drake).

Mingling, she meets the host, J. Conrad Nelson (Adolphe Menjou), a philandering meat magnate, who requests that Louise sing a song.

[5][6] In December 1940 Universal announced that Durbin would star in Susi a remake of The Good Fairy to be directed by Henry Koster, produced by Joe Pasternak and written by Norman Krasna.

[16] In November 1946 producer and writer Felix Jackson, who was married to Durbin, asked for and received a release from his contract with Universal.

[21] For television, Hallmark Hall of Fame presented The Good Fairy on NBC in 1956, produced by Maurice Evans, directed by George Schaefer, and starring Julie Harris, Walter Slezak and Cyril Ritchard.