Two peasant children, Mytyl and Tyltyl, are led by Berylune, a fairy, to search for the Blue Bird of Happiness. Berylune gives Tyltyl a cap with a diamond setting, and when Tyltyl turns the diamond, the children become aware of and conversant with the souls of a Dog and Cat, as well as of Fire, Water, Bread, Light, and other presumably inanimate things. The troupe thus sets off to find the elusive Blue Bird of Happiness.

After the success of his painting "The Empress," artist DeBaudry (William Morse) takes his model, Nedra (Doris Kenyon), to a roadhouse and, unbeknownst to her, registers them as Mr. and Mrs. The roadhouse proprietor, who is also a part-time blackmailer, takes a photo of them together.

An abused young woman finds safety and love in the arms of a famous novelist.