Terry Randall moves into the Footlights Club, a theatrical boarding house in New York. Her polished manners and superior attitude create a chilly atmosphere among the other aspiring actresses, especially her new roommate, flippant, cynical dancer Jean Maitland. From Terry's expensive clothing and a photograph of her elderly grandfather, Jean suspects she has obtained the money from a sugar daddy, just as fellow resident Linda Shaw has from her relationship with influential theatrical producer Anthony Powell. In truth, Terry comes from a wealthy Midwest family. Despite the strong objections of her father, Henry Sims, she is determined to chase her dream. In the boarding house, aging actress Anne Luther becomes her mentor and acting coach, offering guidance and encouragement.
When Powell sees Jean dancing, he decides to drop Linda. He arranges for Jean Maitland and her partner Annie to be hired for the floor show of a nightclub he partly owns. He then begins dating Jean, who starts to fall for him.
Meanwhile, well-liked Kay Hamilton had great success and rave reviews in a play the year before but has had no work since and is running out of money. She clings to the hope of landing the leading role in Powell's new play, Enchanted April. She finally gets an appointment to see Powell, only to have him cancel. She faints in the reception area, the result of malnutrition and disappointment. Seeing this, Terry Randall barges into Powell's private office and berates him for his callousness. The confrontation helps the other residents warm up to the newcomer.
Terry's father secretly finances Enchanted April on the condition that Terry is given the starring role, hoping she will fail and return home. Powell invites Terry to his penthouse to break the news. When Jean arrives unannounced, she sees an opportunity to save her friend from the philandering Powell and helps Terry pretend that Powell is trying to seduce her. The ruse works, but it creates tension around the boarding house. Terry's ascent to the plum part wounds Kay, who had hoped for that opportunity.
The inexperienced Terry is so wooden during rehearsals that Powell tries to sever his contract with Sims. On opening night, after she learns from Jean that Kay has committed suicide, Terry decides she cannot go on. Anne Luther reminds her that she must persevere, not only for herself and the tradition of theatre but for Kay’s memory. Terry delivers a heartfelt performance, and the play becomes a hit, much to her father's chagrin, who sits in the audience. At her curtain call, Terry pays tribute to her late friend, and the two women, Terry and Jean, reach a reconciliation. The play remains a success for months, yet Terry continues to live at the Footlights Club, as a new arrival comes seeking a room and the next chapter begins to unfold.
