Kid Dynamite

Muggs and the gang head to Nick's pool hall to stage a bet with Harry Wycoff. Muggs has arranged with Danny to use special chalk on the cue so Wycoff will lose, but Danny refuses to use it, convinced Muggs will win. The game ends with Muggs losing, and he hits Wycoff in the stomach and walks away without paying.

Wycoff, furious over the pool hall loss, teams up with bookie Tony to eliminate Muggs from the upcoming boxing match. They devise a plan to undermine Muggs and remove him from the competition. The scheming sets the stage for Muggs' abduction and the ensuing chaos.

On the night of the boxing match, Muggs is abducted by a man posing as a reporter and held hostage in the back of a car for the duration of the fight. The East Side Kids scramble to figure out what happened and how to compete. Danny volunteers to enter the ring in Muggs's place and surprisingly wins the match despite being out of shape.

After Muggs is released, he takes the championship belt from Danny and accuses him of arranging the kidnapping. The accusation fractures their friendship and deepens the rift within the gang. Muggs's trust in Danny collapses as tension rises.

Muggs begins harassing Danny after learning that Danny works at a garage and is dating Muggs's sister Ivy. The harassment strains the relationship between the two former friends and creates a volatile dynamic within the group. The conflict foreshadows a looming confrontation.

Danny discovers Wycoff's involvement in Muggs's kidnapping through Tony and tries to tell Muggs. Muggs rejects him and ostracizes him from the East Side Kids, widening the rift between them. The sense of betrayal hardens the dividing lines within the group.

Scruno's father Jackson reveals that Wycoff works for Tony, triggering a confrontation with Tony and his thugs. The East Side Kids clash in a brawl, leading to arrests for disturbing the peace. The judge releases the Kids, while Tony and his allies receive six months for bookmaking.

Danny and Ivy enter a jitterbug contest and seem poised to win; Muggs and his date are initially declared winners until the judge discovers Muggs's partner is a professional dancer. Muggs is disqualified and the fifty-dollar prize goes to Danny and Ivy.

Danny reluctantly hands over the prize money to Muggs after Muggs threatens him, signaling Muggs's continued control over the gang. The dynamic between the two men remains tense, with power and loyalty in flux.

Danny's boss Louis Gendick advises him that he has outgrown Muggs and should enlist in the Army. Danny's mother agrees to his enlistment, and Danny leaves for training camp, signaling a new direction for his life.

Muggs is moved to enlist when he sees headlines about the Nazis destroying Lidice, but his mother resists, fearing he is acting out of rivalry with Danny. The news shifts Muggs's focus toward a potential future in service rather than ongoing street conflicts.

Danny returns on leave from training and proposes to Ivy, reigniting their romance and complicating Muggs's plans. The reunion deepens ties among the characters and sets the stage for reconciliation.

Muggs suggests Danny can rejoin the gang if he helps steal tires from Gendick's garage, but Danny refuses to take orders from Muggs. The refusal shows Danny's growing independence and signals a shift away from the old power structure.

Danny defeats Muggs in a fistfight, easing tensions between the former friends. Muggs renews his friendship with Danny and they, along with Glimpy, join the service, ending the film with a sense of unity and new direction.