A producer hires an unknown dancer for a musical show, and she has to raise money with her horse winning a race.
Sonny Ledford (George Murphy) and Peter Trot (Buddy Ebsen) get barber George Papaloopas (Billy Gilbert) to bet $20 on a 40-1 horse. Steve Raleigh (Robert Taylor) gets Herman J. Whipple (Raymond Walburn) and Caroline Whipple (Binnie Barnes) to invest in his show. Sonny and Peter didn't bet and owe George $800. Sally Lee (Eleanor Powell) helps Sonny care for the Whipples' horse Star-Gazer and hides on the train. Sonny and Peter sing "Follow in My Footsteps" and dance with Sally. Steve sees them and tells them to go to Brown's in New York. Sally sings Steve's new song "Yours and Mine."
Alice Clayton (Sophie Tucker) brings her daughter Betty (Judy Garland) to Brown's for an audition. Steve pays Duffy (Robert Benchley) for publicity. Betty sings "Everybody Sing" and gets others singing. At a boarding house Alice tells the actors to pay their rent. Steve brings Sally for a room, gives her the lead, and kisses her. At rehearsal Alice sings "Some of These Days" for Steve. Star-Gazer is auctioned to Sally, and Steve borrows $1250 from Herman Whipple, asking Sonny to give it to Sally for the horse. Sonny tells Sally that he will train Star-Gazer for nothing, and he sings "I Feel Like a Million" with Sally, and they tap dance. George demands his $800 from Sonny and Peter, but Sally gives George one-third of Star-Gazer. George asks Steve to hear Nick Papaloopas to sing opera while Peter gets Star-Gazer to jump. Peter tries to lose weight to be a jockey.
In her room Betty sings "Dear Mr. Gable, You Made Me Love You." Steve keeps Sally late to rehearse the love scene, causing Caroline Whipple to demand that Steve replace Sally or lose their backing. Sally hears Duffy talking and quits. Sally says that Sonny gave her the money, and she belongs with him. Steve tries to raise money, and Sally refuses to see him. Peter steals grain in his shirt and is fired. Sonny has Star-Gazer in top form and tells Sally that Steve gave the money. At Saratoga Star-Gazer wins $25,000 so that Sally can star in Steve's show. Sally dances with Sonny. Alice sings "Your Broadway and My Broadway," and then Sally dances to "Broadway Rhythm."
Once again musical entertainment is offered audiences as an escape from economic woes, suggesting that somehow (by an unlikely horse race) money will be found to make everything come out all right.