The first of the five films where Bill Elliott played a detective lieutenant in the L.A Sheriff's department, Dial Red "O" (the correct title with the number 0 (zero), as on a telephone dial, shown in ") opens with war-torn veteran Ralph Wyatt getting word that his wife is divorcing him, and he flees the psychiatric ward of the veteran's hospital, wanting to talk to her. His escape touches off an all-out manhunt, led by Lieutenant Andy Flynn of the sheriff's department.

Ole Olsen and Chic Johnson are Broadway stars who return to Universal Studios to make another movie. The mere mention of Olsen and Johnson's names evacuates the studio and terrorizes the management and personnel. Undaunted, the comedians hire an assistant director and unknown talent, and set out to make their own movie.

Abbot and Costello must find a replacement for a woman's horse they accidentally killed after feeding it some candy. They head for the racetrack, find a look-a-like and take it. They do not realize that the nag is "Tea Biscuit," a champion racehorse.