When dashing Prince Danilo (John Gilbert) meets lovely follies dancer Sally O'Hara (Mae Murray), he falls madly in love. Unfortunately, so does his cousin, Crown Prince Mirko (Roy D'Arcy). While both vie for her affections, O'Hara chooses Danilo, and the enraptured prince announces their engagement. Unfortunately, due to O'Hara's lowly station in life, the king prevents the union and O'Hara, feeling rejected, takes comfort in the arms of the wealthy Baron Sadoja (Tully Marshall).