Betsy Brown is released from an orphanage into the care of Pop Shea, her parents' friend who runs a boarding house for theatrical performers.

Sarah Wendling, the curmudgeon owner and next-door neighbor of the building, detests "show people" and their noise, and demands Pop pay the $2,500 back rent he owes or move out immediately.

Her nephew Roger is in love with Pop's daughter Barbara and files suit against Sarah in order to gain control of the building and his inheritance, with which he plans to stage a show starring the hotel's residents.

With the assistance of her friends, the little girl presents a lavish musical revue in the courtroom that so impresses one of the observers, he offers the troupe $2,500 a week to star in his International Follies.

The dance number proved so popular with the cast and crew that Murphy and Temple gave an encore performance after the cameras stopped rolling.