In Vienna, Lieutenant Nikolaus "Niki" von Preyn (Maurice Chevalier) meets Franzi (Claudette Colbert), the leader of an all-female-orchestra. They soon fall in love with each other. While standing in formation before a parade honoring the visiting royal family of Flausenthurm, Niki takes the opportunity to wink at Franzi in the crowd. Unfortunately the gesture is intercepted by Anna, the Princess of Flausenthurm (Miriam Hopkins). The naive Princess assumes offense, leading the lieutenant to convince her that he slighted her because she is thought to be very beautiful. Besotted, the Princess demands she has to marry the lieutenant, or, she'll marry an American instead. The international incident is narrowly averted by having them get married.