Madden Thomas, a once brilliant actor now fallen upon hard times due to alcoholism, lives in New York City with his devoted, gentle daughter Kathi. Despite Kathi's best efforts, Madden's binges are frequent and riotous, and one causes him to be fired on Christmas Eve from a job playing a department store Santa Claus. The night that he is fired, Madden is helped to his apartment by a new neighbor, Robert Carter, a composer who is thrilled to meet the great actor. Robert cultivates a friendship with Kathi, whose loveliness, despite a lame foot, helps him overcome his shyness. Robert succeeds in getting Madden a small part in a play for which he has written the music, much to the delight of his aunt, Alma Lothian, who has been a fervent admirer of Madden for decades. Kathi is pleased that Madden is working again, for she honestly believes that he could be as great as he once was if only he would try. Madden appears to be cutting down on his drinking as well, and Kathi buys some new furniture. She must return it, however, when she learns that Madden has been drinking in secret and owes a large amount of money to a liquor store owner. That night, Robert, who has fallen in love with Kathi, questions her about her past and her hopes for the future. She reveals that her mother died in childbirth, and that while she herself greatly desires children, she is afraid of passing on her lameness. Soon after, producer Sid Gordon tells Madden that he wants him to star in a new production of King Lear . Madden is worried about the hard work involved, but Kathi is thrilled and begins to get him in shape. Robert, who had been offered a job in Hollywood, stays in New York to do the music for the play, which is being backed by the wealthy Alma. Robert also finds the doctor who delivered Kathi and learns that she was not born crippled, but was hurt when a drunken Madden dropped her when she was a few months old. To spare the grieving actor any more pain, the doctor told him that Kathi had a congenital defect that did not surface immediately. Kathi is pleased to learn that she can safely have children and agrees to marry Robert. Not wanting to distract Madden, who is excelling in rehearsals, the couple decide not to tell him that they are marrying and leaving for Hollywood until the actual day, which will be after opening night. Madden accidentally finds out, however, and is crushed to think that Kathi is deserting him. He gets drunk and arrives late at the theater on opening night, and during an ensuing argument with Kathi, she reveals that he caused her lameness. Determined to leave her clinging father for good, Kathi insists that she is still going with Robert to Hollywood, but the next evening, is overcome with remorse. She tells Madden that he did not cause her injury, then tells Robert that she must stay in New York. Madden overhears their discussion as they proclaim their undying love and realizes that he cannot deprive his daughter of starting a life of her own. After writing Kathi a note telling her to go to Hollywood, Madden goes to Alma's apartment, where he accepts her proposal of marriage.