A beautiful young gold digger woos Harry Von Zell and then sets her sights on Ronnie, who perceives a date with this slightly "older woman" as the exact life experience that he needs to effectively portray a character in his latest play.
As part of his plan to become a dramatic actor, Ronnie changes his name to Cobb Cochran, so Gracie changes her name to Lola Benedict, but a misunderstood phone call leads everyone to believe George is cheating on Gracie with Lola.
While visiting the book store to push George's autobiography, Blanche wallops a man whom she mistakes for a masher, not knowing he's the same guy that Harry has made business-dinner plans with. Meanwhile, Ronnie decides to get a motorcycle.
There are plans for George's autobiography to be adapted as a stage musical, and everyone is eager to invest - not knowing that George wants to star as himself. Meanwhile, Ronnie and Velma endlessly rehearse their own play.
Marie, the hotel's new cigarette girl, attracts the attention of all the men in the building. When she gives Gracie a vague message about Ronnie's tickets for a trip to Connecticut, Gracie assumes her son is planning to elope with her.
For Christmas, Harry Morton invites his father and Blanche invites her brother. Unfortunately the hotel is booked solid - so Gracie attempts to create a vacancy. Meanwhile, Ronnie invites Jim so they can work on scripting a new play.
A fight erupts between George and his son when an unscrupulous talent agent with ulterior motives offers Ronnie a contract. Meanwhile, Ronnie dreads embarrassment when his latest girlfriend's high society parents come to dinner.
When Alice, Harry von Zell's old girlfriend, comes to see him in New York, he believes that she plans to propose marriage. Gracie manages to complicate matters by spreading a rumor that he secretly wed Marie, the cigarette girl.
Gracie catches George in a lie and concludes his vision is deteriorating. When he refuses to visit the eye doctor, she presumes he's afraid glasses will hinder his appearance, so she insists that all of their friends to sport spectacles.
An Indian Maharajah and his "retinue" have checked into the St. Moritz Hotel, and Gracie and Blanche cannot contain their curiosity, so they attempt to sneak onto his private floor. Meanwhile, Ronnie goes out with the Maharajah's daughter.
Harry Morton is so terrified that his career will be ruined if Gracie joins an elite women's club that Blanche makes a fool of herself. Meanwhile, Ronnie and his parents baffle everyone when they practice the Stanislavski acting method.
Ronnie lands the lead in a production of Cyrano de Bergerac but worries that he lacks the talent to play the part, so his parents go to great lengths to boost his confidence. Meanwhile, Blanche's niece arrives for a visit.
After Gracie walks off with some plants from Central Park, Harry Morton declares she has committed a crime, so she decides to turn herself in. Meanwhile, Ronnie takes up fencing for his latest stage outing.
Gracie tracks down playwright Raymond Curtis to get Ronnie a role, and during their conversation she claims to be a widow. George gleefully complicates matters when Mr. Curtis asks Gracie to his apartment for a romantic dinner.
When Ronnie makes plans to hold a party for his class in the family's suite, Gracie decides to accept Blanche's invitation to Mrs. Sohmers' party at Oyster Bay. The problem is that neither Blanche nor Mrs. Sohmers invited her.
When Emily Vanderlip arrives in Manhattan after eloping with Airman Second Class Frank Foster, the newlyweds and Burns men attempt to keep Gracie from finding out about their nuptials, fearing that she'll blab to Emily's parents.
Ronnie's drama school is losing money and decides to put on its usual production of "Othello" to raise funds. However, Gracie talks them into doing a variety show instead, the type of vaudeville skits that she and George used to do.
Everyone praises George for his performance at Ronnie's school the previous evening, but when he graciously accepts their compliments he's accused of having an inflated ego. Meanwhile, Jim and Ronnie try out for jobs in a burlesque theater.
Gracie plans to open a dress shop with the wardrobe she bought in Paris, but George insists on sending the dresses back, so she enlists Harry Von Zell and Ronnie to intercept the inventory and Mrs. Sohmers to finance the store.
When Ronnie locks himself in his room to rehearse a role, Gracie thinks he's heartbroken because Yvette has gone back to Paris, so she hires a beautiful model to pose as George's new secretary in hopes that Ronnie will fall for her.
George falls asleep on the massage table at the Friar's Club and gets locked in for the night. When the hat-check girl from The Stork Club later drops off his coat, which Harry Von Zell borrowed for a date, Gracie seeks a divorce.
Blanche threatens to resign from The Ladies of Oyster Bay if Gracie isn't permitted membership, but first she must pass a literary quiz, so Mrs. Sohmers decides to help Gracie cheat. Meanwhile, Harry Von Zell offers to teach Ronnie judo.
To prevent Gracie from ruining Harry Morton's birthday party, George tells her he's throwing a party for Ronnie. To ensure he shows up, Gracie tells Ronnie the party's for George. Meanwhile, Harry Von Zell presumes he's the guest of honor.
Mrs. Sohmers is finding it difficult to live in a world containing a Gracie Allen, so she consults a psychologist who believes Gracie is a figment of her imagination. Meanwhile, Von Zell tries to shock Gracie by pouring water in his pocket.
When Harry Morton is offered a new position which would require him to stay on the road for two years, Blanche and Gracie hijack the hotel's telephone switchboard to prevent him from placing a call to accept the job.