Andy Hardy, a charming teenager from Carvel and a new tow truck owner, finds himself entangled in a series of misunderstandings and personal dilemmas in his small-town community. When Andy, played by <a href="/actor/mickey-rooney">Mickey Rooney</a>, is stopped by a police officer for driving without a license plate, an unexpected twist occurs as a radio broadcast implicates him in the theft of the very car he is towing. This jarring incident throws Andy into a troublesome situation, making it difficult for him to maintain his usual cheerful demeanor.
At home, Andy’s family and friends gather to celebrate his sister Marian’s (played by <a href="/actor/cecilia-parker">Cecilia Parker</a>) return from her trip to New York. However, Marian is somewhat dismissive of Carvel, believing it’s too unsophisticated for her tastes, and she feels annoyed by her family's concerns over her relationship with Jeff Willis, a local young man who is perceived as a bit of a troublemaker. Meanwhile, Andy’s father, Judge <a href="/actor/lewis-stone">Lewis Stone</a>, offers Andy reassurance and promises to clear his name after a conversation in his study.
The judge devises a plan to help Andy by encouraging him to befriend Melodie Nesbit, a teenage girl caught in a custody dispute between her mother, Olivia (Frieda Inescort), and her father, Roderick (Harvey Stephens). Though Melodie isn’t as glamorous or outgoing as some of Andy’s other friends, he agrees to help her out by inviting her to a dance, highlighting his kind and caring nature.
As the story progresses, romantic tension and social misunderstandings unfold. Jeff arrives at Marian’s house loudly proclaiming his invitation to Marian to attend the Red Door Inn on the 19th, an inn notorious for hosting scandalous activities. Andy warns Marian about the inn, emphasizing the importance of avoiding trouble and scandals that could tarnish her reputation.
On the night of the dance, Melodie is excited to attend despite knowing that Andy has only asked her out because of his father’s request. Andy, overwhelmed, has to persuade his friends to dance with her, with only Harry Land, who secretly harbors feelings for Melodie, refusing money so he can dance with her as well. After the dance, Melodie confides in Andy about her feelings and asks for advice on how to attract boys, revealing her earnest and hopeful personality.
Meanwhile, Andy’s mother, <a href="/actor/fay-holden">Fay Holden</a>, secretly spends forty dollars from their household account on a stylish coat for Andy, causing some tension, especially when the coat’s cost turns out to be more than expected—$61.40—an amount Emily (Donna Reed) refuses to accept, believing the ad had misled her about the charges.
The plot thickens as Marian’s date with Jeff turns sour when her family mocks her choice of a fancy nightgown, which she intends to wear as a dress, vowing to prove her independence. That same night, a collection agency shows up demanding full payment for the coat, threatening court action and wage garnishments if they fail to settle the bill.
Back at the dance, Melodie dazzles everyone with her improved appearance, and now young men are willing to dance with Andy, who admits that he does not reciprocate her feelings. Melodie, however, overhears her parents fighting bitterly at her house and is deeply upset. Andy, feeling guilty for hurting her, is comforted by the return of Polly Benedict, his former love interest. Melodie later confesses she doesn’t want to see her parents again, and the judge allows her to spend the night at his house.
Later, Andy volunteers to find Marian when she’s overdue, and eventually brings her back, towing Jeff’s car, which Jeff had crashed drunkenly. Jeff, in a sobering moment, admits to <a href="/actor/lewis-stone">Judge Hardy</a> how far he has fallen and promises to change after being warned about the dangers of reckless behavior.
Throughout the story, <a href="/actor/ferida-inescort">Olivia</a> and <a href="/actor/harvey-stephens">Roderick Nesbit</a> are advised to repair their relationship, prompted by a stern but caring judge who convinces them to set aside their differences. Meanwhile, Emily, overwhelmed by the coat fees, feels remorseful but is reassured by the judge that she was deceived by confidence men running a scam.
Looking ahead, Andy encourages Harry to pursue Melodie, who has moved past her crush on him and is now eager to date Harry. Andy also persuades Polly to join him at the upcoming football dance. As he leaves Melodie’s house, he notices Polly driving by with her cousin, who was mistakenly believed to have stolen Andy’s car earlier.
In the end, everything settles down, with Andy reflecting that "women are habit forming", a humorous nod to the various romantic entanglements and lessons learned. The story highlights themes of honesty, responsibility, family bonds, and youthful innocence, set against the backdrop of small-town life and its predictable yet charming adventures.