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When Amos Divine is retired with a meager pension, his spoiled wife Christina castigates him, but their optimistic daughter Mary Beth, who longs for a musical career, helps them economize. Meanwhile, composer Richard Warner arrives from Vermont, but his hopes of selling his ballads are dashed by publishers who want cheap, trashy melodies. Mary decides to rent the attic room, and Richard, hearing her play, takes it. After Richard accidentally starts a fire while raptly composing, Mary begins to fall in love. Penniless, Richard starts to asphyxiate himself, but Mary brings him biscuits and encourages him to persevere. After Mary finds Richard's song, "The Rainbow Girl," dedicated to his "Loved One," he explains that he cannot marry his sweetheart until he has made good. Mary jealously says that she too has a sweetheart, "Snookums," but they have quarreled. After Mary secretly sells Richard's song to a publisher, Richard, seeing her cry, sends flowers from "Snookums" to effect a reconciliation. When Mary reveals that there is no "Snookums," Richard confesses that Mary is his "rainbow girl," and they embrace.