The year is 1933 and Broadway, like the rest of the US, has fallen on hard times.
Undeterred, revered Broadway director Julian Marsh mounts an ambitious new musical production as a final hoorah before his retirement. Excitement abounds amongst the young and talented hopefuls of the Broadway community, including newcomer, Peggy Sawyer, who arrives late to auditions but captures the eye of both Julian Marsh and Billy Lawlor, the juvenile lead.
Meanwhile the leading lady, fading star Dorothy Brock whose wealthy paramour Abner Dillon is providing the backing for the show, takes an immediate dislike to the talented newcomer. But when fate takes a turn before opening night, Peggy gets her chance to step in and become a star.