Johnny Stark and the crew of a tramp steamer land on the island of Caparoja, where Colonel Sangredo, the local "potentate," tells them of the island's many pleasures. Johnny and his pal, Happy, encounter Peggy, a stranded American actress, singing in a tavern, while Sangredo discovers that his friend Carlotta has deserted him and obtains Peggy's services in singing at a fiesta. Johnny tells Peggy of his love and proposes an immediate marriage, but he is furious upon learning of the arrangement with Sangredo and she renounces him. When she sings to Johnny at the fiesta, Sangredo orders his arrest, but Peggy secures his freedom by agreeing to dine with the colonel; Johnny returns with his pal, however, and rescues her.