The season opening of a big city opera coincides with the return from the war of opera star Richard Herald's son Dick Johnson. Dick, who is also an opera singer, attends a pool party held in honor of returning servicemen and greets Leonora "Nora" Cambaretti, a water ballet dancer starring in the new "Aqua Capers" show. Nora, who entertained Dick and other wounded soldiers in Europe during the war, barely remembers the day she met Dick and he planted a kiss on her lips, but Dick remembers the kiss very well. Unaware that Dick is the son of a famous opera star, Nora, believing that he is penniless, asks friend Xavier Cugat to give him a job at his nightclub. Nora is also unaware that Dick's father expects him to marry Frances Allenbury, a childhood friend of Dick who is now a wealthy socialite. Ferdi Farro, Nora's pianist and self-appointed guardian, objects to Nora's interest in Dick, as does Gordon Coome, owner of the aquacade. Ferdi and Coome are both in love with Nora, but Nora is only interested in pursuing a romance with Dick. Time passes, and Nora consents to marry Dick if he can pass an "inspection" by her grandmother in Michigan. Braving the cold winter weather, Nora and Dick set out for Mackinac Island, to visit aging Grandma Cambaretti. Nora's grandmother instantly approves of Dick, as does Nora's young niece Deborah, but the wedding plans are soon called off when Nora receives word from Ferdi that newspapers have announced Dick and Frances' engagement. Believing that Dick has been deceiving her, Nora leaves Mackinac Island at once and returns home. Dick soon discovers that his father and Frances deliberately tried to sabotage his romance with Nora by placing the engagement announcement in the newspapers. Dick makes repeated attempts to explain the situation to Nora, but she refuses to speak with him. Several months pass, and Richard, now certain that his son will only be happy with Nora, has a change of heart and tries to aid Dick and Nora's reconciliation. After learning that Nora is vacationing at Mackinac Island, Richard convinces Ferdi to accompany him there to help bring Nora and Dick back together. Nora, meanwhile, makes plans to elope with Gordon. When they arrive on the island, Richard and Ferdi find that Dick is there, too, performing with Cugat's band at the Grand Hotel. Ferdi and Richard eventually convince Nora that Dick is worthy of her love, and they are happy to see that the couple will resume their romance.