Ole and Chick are making a movie, but the director is not satisfied. So he brings them to a young writer, who outlines them an absurd story. They have to support Jeff and Kitty in setting up a musical revue in their garden and want to bring it up on Broadway. If Jeff is successful he can marry Kitty. But there is his rich friend Woody, who also loves Kitty, Chick's sister Betty, who's in love with a false Russian count, and detective Quimby. They all make the thing very complicated for Ole and Chick. After some mistakes they think that Kitty isn't the right girl for Jeff and they start sabotaging the show, but the Broadway producer is impressed and signs the contract. That's the story the writer tells them. For this he's sued by the director.

Dancer Sherazade was told by the stars that she will become wife of the kalif in Bagdad. She tells Kamar, brother of kalif Haroun. He planned a coup d'etat, which failed at first, but supported by the wasir he finally succeeds. Haroun is injured and gets help from Ahmad's actor troupe, where he is nursed by Sherazade, who doesn't recognise him. When she hears that Kamar is looking for her she goes to him, but is sold with the complete troupe of actors to slavery. They're able to escape, but Haroun is still in danger. To save him, Sherazade agrees to poison Kamar, but Haroun tries to establish his rulership first.