Travellers on a trans-European train are delayed for a night due to bad weather in a small fictional country called Mandrika. The passengers cram into the small village hotel where socialite Iris Henderson meets an old governess called Miss Froy. Shortly after the journey restarts, Miss Froy disappears.

It's a dreary Christmas 1944 for the American POWs in Stalag 17. For the men in Barracks 4, all Sergeants, they have to deal with another problem - there seems to be a security leak. The Germans always seem to be forewarned about escapes and in the most recent attempt the two men, Manfredi and Johnson, walked straight into a trap and were killed. For some in Barracks 4, especially the loud-mouthed Duke, the leaker is obvious: J.J. Sefton a wheeler-dealer who doesn't hesitate to trade with the guards and who has acquired goods and privileges that no other prisoner seems to have. Sefton denies giving the Germans any information and makes it quite clear that he has no intention of ever trying to escape. He plans to to ride out the war in what little comfort he can arrange, but it doesn't extend to spying for the Germans. As tensions mount and a mob mentality takes root, it becomes...

The small state of Freedonia is in a financial mess, borrowing a huge sum of cash from wealthy widow Mrs. Teasdale. She insists on replacing the current president with crazy Rufus T. Firefly and mayhem erupts. To make matters worse, the neighboring state sends inept spies Chicolini and Pinky to obtain top secret information, creating even more chaos!

The opening title reads: "A comedy with a smile--and perhaps a tear". As she leaves the charity hospital and passes a church wedding, Edna deposits her new baby with a pleading note in a limousine and goes off to commit suicide. The limo is stolen by thieves who dump the baby by a garbage can. Charlie the Tramp finds the baby and makes a home for him. Five years later Edna has become an opera star but does charity work for slum youngsters in hope of finding her boy. A doctor called by Edna discovers the note with the truth about the Kid and reports it to the authorities who come to take him away from Charlie. Before he arrives at the Orphan Asylum Charlie steals him back and takes him to a flophouse. The proprietor reads of a reward for the Kid and takes him to Edna. Charlie is later awakened by a kind policeman who reunites him with the Kid at Edna's mansion.

The classic stage hit gets the Hollywood treatment in the story of Elwood P. Dowd who makes friends with a spirit taking the form of a human-sized rabbit named Harvey that only he sees (and a few privileged others on occasion also.) After his sister tries to commit him to a mental institution, a comedy of errors ensues. Elwood and Harvey become the catalysts for a family mending its wounds and for romance blossoming in unexpected places.