A millionaire dreams that a fortune hunter is trying to marry his daughter; so he gives all his money to his other daughter, who makes them all poor.
Harrison Allen (George Barbier) dreams he is retiring, leaving his money to his daughters; but Phyllis Allen (Betty Furness) wants to marry Ramon del Ramos (Rafael Storm), who wants Allen's money. At 3 a.m. Allen sends Botts (Andrew Tombes) to find Phyllis. Allen's secretary George Burns (himself) warns him that Gracie can't handle all his money. Allen finds Gracie Allen (herself) under her bed and deeds her all his possessions before witnesses. George explains it to Gracie, who cuts his salary in half. Ramon and Phyllis tell Allen they are getting married. Allen tells Phyllis that he gave his money to Gracie to test if Ramon loves her. Allen leaves on a train, and Gracie has George give his car keys away.
Gracie cuts up Botts' suit and invites unemployed actors and dogs. She cuts George's suit to make him look poor. Ramon complains that Phyllis is nagging him to get a job. Ramon meets the witnesses and sends Abdullah to tell Gracie her fortune, that she will meet the man of her dreams while horse-back riding. Botts sleeps on a park bench. He goes in and wakes the actors before serving breakfast to Gracie. Botts wakes George, but Abdullah is in his bed. Botts tells George that Gracie is producing a show. While horse-back riding, Gracie meets Ramon, who kisses her hand and says he wants her. George, Phyllis, and Botts eat on the balcony. Gracie plans to elope with Ramon. Botts gets money so that Phyllis can go to her father. Gracie returns and tells George that Ramon is in love with her, and she is getting married. Allen has no money when Phyllis arrives and says she is through with Ramon. Allen calls Gracie to send money, but she says he is supposed to be poor.
George wakes to find the house is being dismantled, because Gracie is making it into a theater. Allen and Phyllis get a ride. Allen demands to get into the "theater." In the show a drummer performs, and Gracie sings with Gauchos. Roman and Abdullah steal the money; but Gracie has cops lock them in the box office. Allen gets in the wine cellar, which is empty. Allen goes on stage while Gracie is playing Juliet, and he tells people to leave. Gracie says that she is marrying. George says that Hollywood wants Gracie, who tells George to marry her.
This farce turns a wealthy household upside down as vaudeville acts take over the mansion, thanks to the bizarre antics of the whimsical Gracie Allen while the motive of the gold digger is exposed.