Captain Bob Wallace and Private Phil Davis meet while serving in World War II and form a successful song-and-dance act after the war. They quickly become a top Broadway duo. Bob and Phil later travel to a Vermont lodge to support the struggling inn run by their former commanding officer, General Waverly. At the lodge, they perform and are charmed by two beautiful sisters, Betty and Judy Haynes, who have their own musical act. Bob and Phil concoct a plan to bring in business to the lodge by putting on one of their musical shows.

The plan hits a snag when misunderstandings and mistaken identities create emotional tension among Bob, Phil, Betty, and Judy. Meanwhile, they discover that the general's lodge is nearly bankrupt, and their efforts become focused on saving it. As the storyline progresses, the characters work through their interpersonal conflicts and come together to try and bring festive cheer and financial salvation to the inn. The final act holds the resolution of their personal and professional endeavors.