On Christmas Eve, Harry Carey stars as George Vale Melton and Charles Winninger as Michael O'Brien, two veteran engineers who work furiously to finalize a crucial design before the holiday hush settles in. Their third partner, Allan 'Chad' Chadwick, is portrayed by C. Aubrey Smith, and the trio returns to the mansion they share with the elderly countess Madame Tanya, played by Maria Ouspenskaya, for a quietly elegant Christmas dinner. When the guest list collapses at the last moment, the men fear their pasts and reputations might be catching up with them, casting a pall over the hopeful mood of the evening.
To chase away the gloom, the three men improvise a people-pleasing plan: each tosses a wallet containing ten dollars and a business card into the street, hoping to lure new guests. The wallet from George Melton is picked up by Arlene Terry, a rising star in the singing world, and the moment is softened as she simply hands the money back to her driver and discards the card. The other two wallets are retrieved by strangers who are more than kind: James Houston and Jean Lawrence, the latter a thoughtful teacher. James Houston and Jean Lawrence arrive as dinner guests and quickly become friends with the three men and their gracious hostess, Madame Tanya. The budding friendship soon blossoms into love for James and Jean, which fills the older gentlemen with mingled warmth and wistful pride.
The trio of engineers must travel to another city on business, and Madame Tanya pleads with Michael to take the train instead of flying. He assures her it is safe, but fate has a different plan: a violent storm swallows their aircraft, and the crash claims all three lives. News arrives that James and Jean are now engaged, and the lovers must face a future without the guidance of their three mentors. Yet the abandoned house feels different now, with faint, comforting whispers—ghostly presences that drift through the halls, barely noticed by Madame Tanya, who senses a quiet vigil watching over them.
In a surprising turn of fortune, Michael had left bonds to James and Jean so they could afford to marry, and the story quickly travels through the press. James is invited to be a guest on a radio show, an opportunity he has long dreamed of, and the moment he steps into the studio, he encounters Arlene Terry again. She recognizes his talent and, along with her manager Phil Hubert, offers him a starring role in a new show. James accepts, and his star begins to rise; however, as rehearsals progress, he grows infatuated with Arlene, unintentionally letting Jean fade from his thoughts. The three benevolent ghosts—George, Michael, and Allan—watch with a quiet sorrow, powerless to intervene in mortal affairs, even as James and Arlene spend time together in the country and in the studio, separated from the world of the living.
Meanwhile, the film tracks Arlene’s fragile personal life. Her ex-husband reappears and presses her for help to reestablish himself, but she rebuffs him, choosing her own path and the promise she sees with James. The tension culminates when the ex-husband follows the couple to a dinner and opens fire, cutting short James and Arlene’s moment in the world of the living. James dies on the operating table, his spirit greeted by Michael, who pleads for a second chance on the young man’s behalf. A benevolent voice from above seems to grant that wish, and James is granted a remarkable return to life. The ghostly trio dissolves into the ether as Michael is reunited with a repentant George Melton, and the two are finally admitted into Heaven, their long farewell to the living resolved at last.
