Eddie and his Mexican friend Ricardo are expelled from college after Ricardo put Eddie in the girl's dormitory when he was drunk. Per chance Eddie gets mixed up in a bank robbery and is forced to drive the robbers to safety. To get rid of him they force him to leave the USA for Mexico, but a cop is following him. Eddie meets Ricardo there, Ricardo helps him avoid being arrested by the cop when he introduces Eddie as the great Spanish bullfighter Don Sebastian II. The problem is, the cop is still curious and has tickets for the bullfight. Eddie's situation becomes more critical, when he tries to help Ricardo to win the girl he loves, but she's engaged to a "real" Mexican, who is, unknown to her father, involved in illegal business. While trying to avoid all this trouble, Eddie himself falls in love with his friend's girl friend's sister Rosalie, who also want to see the great Don Sebastian II to kill the bull in the arena.
Sally is an orphan who was named by the telephone exchange where she was abandoned as a baby. In the orphanage, she discovered the joy of dancing. Working as a waitress, she serves Blair (Alexander Gray), and they both fall for each other, but Blair is engaged to socialite Marcia. Sally is hired to impersonate a famous Russian dancer named Noskerova, but at that engagement, she is found to be a phoney. Undaunted, she proceeds with her life and has a show on Broadway, but she still thinks of Blair.
Joe Lane, radio entertainer and songwriter, learns that the manager of the studio, Arthur Phillips, has made improper advances to his wife, Katherine. Infuriated, Lane engages him in a fight, and the encounter results in Phillips' accidental death. Joe goes to prison for a few years, and when he is released he visits his son, Little Pal, at school and is begged by him to run away together.
The vaudeville act of Harriet and Queenie Mahoney comes to Broadway, where their friend Eddie Kerns needs them for his number in one of Francis Zanfield's shows. When Eddie meets Queenie, he soon falls in love with her—but she is already being courted by Jock Warriner, a member of New York high society. Queenie eventually recognizes that, to Jock, she is nothing more than a toy, and that Eddie is in love with her.
A young Jewish man is torn between tradition and individuality when his old-fashioned family objects to his career as a jazz singer. This is the first full length feature film to use synchronized sound, and is the original film musical.