Set at the turn of the twentieth century, this breezy, genteel romance follows Virgil Smith, a traveling salesman who arrives in Vienna hoping to persuade the aging monarchy to buy a gramophone, a gesture that could help launch the American invention across Europe. At the same time, Countess Johanna Augusta Franziska von Stoltzenberg-Stolzenberg and her father, Baron Holenia, celebrate the idea that their poodle Scheherezade might mate with the emperor’s own dog, a mating that would elevate their social standing in a world of rigid class lines. When Virgil and his white fox terrier Buttons collide with Scheherezade, the clash becomes a lighthearted spark that hints at deeper connections between the two couples.
When Scheherezade experiences a nervous breakdown, she is treated by Dr. Zwieback, a veterinarian who practices Freudian psychology, and he advises Johanna to force her dog to confront Buttons to dissipate the fear. This unconventional approach sets off a chain of events: the dogs are briefly reunited, and the two owners begin to spend a great deal of time together, their own growing attraction mirroring the budding affection between the animals. Unbeknownst to them, Scheherezade and Buttons mate, adding a secret undercurrent to the unfolding romance.
Virgil gradually convinces Johanna that true love can bridge even the widest social gaps, and he asks the Emperor for her hand in marriage. This is the pivotal moment of the film, a scene noted for lifting the plot beyond light comedy. The Emperor is cordial and paternal with Virgil, yet he doubts whether Johanna could be happy leaving her world behind for Newark, New Jersey. > "We are not better than you", explains the Emperor sadly, "I think perhaps you are better than us. But we are like snails: If you take us out of our majestic shells, we die."
In a tense exchange, the Emperor offers a deal: endorse the gramophone to boost Virgil’s sales only if he ends the romance with Johanna. Virgil declines, feeling insulted, but the Emperor presses one last question: Are you sure you will be enough for her? This question becomes a crucible moment for Virgil, who realizes that sacrificing Johanna’s happiness for a safe future would be a betrayal of the love he has come to feel.
Months pass, and Scheherezade gives birth to a litter of white puppies with black patches—apparently fathered by Buttons, not the Emperor’s poodle. Holenia, fearing the Emperor’s anger, tells him the pups were stillborn and orders them drowned. Virgil, who has slipped back into the palace to speak with Johanna one last time, intervenes to rescue the puppies and confronts the Emperor, who chastises Holenia and asks Virgil to surrender the pups. Yet Virgil remains outspoken about class snobbery, and in the heat of the confrontation, he forgets that Johanna is nearby and blurts out that he never should have let the aristocracy decide her fate. Johanna overhears and forgives him, declaring that she would rather take a chance at a life with him than settle for a life of privilege without love. The Emperor, moved by their commitment, finally gives his blessing, and Virgil and Johanna join in marriage.
