In New York, Madden Thomas, Monty Woolley, has fallen from grace due to alcoholism and is fired from his Santa Claus job in a department store on Christmas Eve. This sudden fall leaves him, and his sweet young daughter, Kathi Ida Lupino, navigating a precarious new reality. The two lean on each other as they face mounting consequences, and their small world hinges on the arrival of a neighbor who brings a glimmer of possibility.
A hopeful bond forms between Kathi and Robert Carter, a young composer who becomes their neighbor. Robert, Cornel Wilde, takes a genuine liking to Kathi, and his steady support helps open doors that once seemed closed. He uses his influence to secure Madden a paid acting job in a minor production for which he himself has written the music, giving the fallen man a chance at redemption and a renewed sense of purpose. Madden’s renewed spirits are not only a personal reprieve; they ripple through the family, inspiring Kathi to dream again about normalcy and a brighter future for both of them.
Alma Lothian, Sara Allgood, Robert’s devoted aunt and a towering admirer of Madden’s earlier work, shares in the family’s joy when news of the new opportunity reaches them. Through Alma’s warmth and encouragement, Kathi clings to the hope that her father might reclaim some of his former strength, while also observing how Robert’s steady presence could help shape their lives. Kathi’s own heart begins to open to the possibility of a family of her own, even as she grapples with fears about her handicap and how it might be passed on to future children.
Tensions rise as debts surface: Kathi learns that Madden carries substantial debts tied to his drinking, a revelation that casts a shadow over their plans and tests the trust and resilience of the young couple. Meanwhile, the prospect of a future together grows heavier with the weight of responsibility and the longing for stability. Robert’s affection for Kathi deepens, even as he puts aside his Hollywood ambitions to focus on the music and the life they might build together.
A dramatic turn in the patients’ past comes when the doctor who delivered Kathi reveals—the lie told long ago to spare Madden the guilt—that her lameness was the result of an accident rather than a congenital condition. This truth reshapes Kathi’s feelings about her handicap and clarifies her path forward with Robert, strengthening her resolve to pursue a life that includes both love and independence.
As the opening night nears, Madden’s progress prompts grand dreams of a shared future. He receives the promise of a main role in a large production, and Kathi exults at the thought of moving forward. The couple’s plans to move to Hollywood drift into their conversations, and Robert’s devotion to Kathi deepens his decision to delay a separate opportunity to help bring the dream to life.
The night of revelation arrives: a heated moment between Kathi and Madden exposes the truth about her lameness, leaving her shaken and torn between loyalties to her father and the life she hopes to build with Robert. Madden, confronted with this painful reality, experiences a personal reckoning that leads him to a decisive act. He writes a heartfelt letter to Alma, inviting her into a life with him and acknowledging that it is time for Kathi to carve out her own path.
In the end, Madden finds a way forward: he accepts Alma’s proposal and resolves to begin a new chapter with her, even as Kathi and Robert reconsider their plans to move to Hollywood. The story closes on a note of renewal and acceptance, with Madden choosing marriage and a future that honors both his past contributions and his daughter’s happiness.