Coney Island

1905, Coney Island. Eddie Johnson travels to confront his rival Joe Rocco after being cheated out of their carnival share. He seeks a stake in Joe's new saloon with singer Kate Farley, but Joe orders him to leave after Eddie denigrates Kate.

Eddie convinces his friend Frankie, who runs a tattooed-woman sideshow, to transform it into a Turkish Harem with dancing girls. The act draws large crowds and steals Joe's customers. Kate heckles Eddie's plan, but the spectacle proves a smash.

Joe responds by sending thugs to destroy the place. A massive fistfight erupts in Joe's saloon, and Joe inadvertently knocks out Finnegan, a lovable souse. Eddie and Frankie spirit Finnegan away and stage a fake funeral for him.

Eddie and Frankie give Finnegan money to go to Atlantic City for a month, then stage a fake funeral. Eddie convinces Joe that he killed Finnegan and threatens to turn him over to the police unless he allows Eddie to redesign and run the saloon.

Joe reluctantly agrees to let Eddie overhaul the saloon. Kate fights Eddie's attempt to tone down her garish costumes and frenetic singing, feeling protective of their identity.

Within two weeks, Eddie's changes triple the saloon's business and Kate becomes a hit with the crowd. The transformed atmosphere revitalizes the venue and Kate's performances win swelling applause.

One afternoon Finnegan reappears in the saloon, prompting Joe to suspect Eddie's ruse. He decides to wait and pounce later instead of exposing the deception immediately.

As weeks pass, Eddie and Kate fall in love and begin planning Eddie's own nightclub. The romance complicates the power dynamics with Joe, who sees Kate as both talent and a potential threat.

Joe grows jealous and argues with Eddie about Kate and their future. He writes to Broadway impresario William Hammerstein to invite Kate to audition, while Eddie and Frankie scheme to keep her from leaving that night.

Kate misses her audition, and Joe tells her Eddie is using her as collateral for a bank loan. Crushed, Kate goes to Hammerstein's theater with Joe to sing, where she eventually reconciles with Eddie after his apology.

The couple prepare to marry, but Joe orchestrates another ruse by hiring an actor to tell Kate that Eddie's loan was secured using her singing as collateral. Kate is devastated and breaks up with Eddie.

Hammerstein stages a show starring Kate, with Joe as her manager and proposing marriage. Kate declines, and when Eddie appears backstage, he forces Joe to reveal that he sabotaged their wedding.

Kate returns to the stage, and Joe secretly brings Eddie into the orchestra to play piano. Kate realizes Eddie is there, and the two share a knowing smile as she sings him a romantic ballad.