Four socialites unexpectedly clash: heiress Brooke Carter runs into gambler Johnny Spanish at the race track while playboy Michael O. Pritchard nearly runs into stage star Kitty O'Kelly with his car. Backstage at Kitty's show, it turns out she and Brooke are old friends who attended public school together. The foursome do the town, accompanied by Brooke's companion Elizabeth, who throws herself at Michael's butler and chauffeur Rodney James.

Kris Kringle, seemingly the embodiment of Santa Claus, is asked to portray the jolly old fellow at Macy's following his performance in the Thanksgiving Day parade. His portrayal is so complete that many begin to question if he truly is Santa Claus, while others question his sanity.