In dire financial straits, businessman John Baird considers liquidating the bonds that are held in trust for his little daughter Margery. Failing to comprehend her husband's desperation, Virginia Baird refuses his request and, upon overhearing his lawyer advising him to utilize the bonds without consulting her, she decides to place them in the hands of George Drake, an old friend. Drake hijacks the securities, however, and their disappearance leads to the break up of the Baird's marriage, resulting in Virginia leaving the house. Attempting to console her father, Margery sets out on her pony to bring her mother home. But she is held up on the road by Captain Kidd Jr., who adopts her as his first mate, and the two children take up residence on a grass hut on a nearby island.

Little orphaned Kate lives happily in a New England lighthouse with its old keepers, Philemon, Peter and Captain Bartholomew. When Kate falls sick, the prudish Philemon hires Miss Summerville, a live-in nurse, to care for her, but is concerned about possible gossip. To alleviate the situation, each keeper and Dr. Carlyle propose to Miss Summerville, but she rejects them all. After hearing that Captain Peyton, a lighthouse inspector, is scheduled to arrive, Miss Summerville makes sudden plans to depart without explanation. At the urging of Carlyle, she agrees to stay, but tries to avoid Peyton by turning off the lighthouse beacon.

Rosarita, a young relative of the powerful Doña Perfecta in the small Spanish village of Orbajosa, has been betrothed since infancy to her cousin, Pepe Rey Don Jose, although the two have never met. When Pepe comes to visit Rosarita, she immediately falls in love with him, but his offhand remark about the lack of enterprise in the small town alienates Doña Perfecta, and the old woman becomes determined to prevent the marriage.

After Fred, an orphan raised by his wealthy Uncle Oliver marries Clara over his uncle's objections, the two men become estranged. When Fred and Clara's child Paul is six years old, Fred insists that his uncle pay them a visit over Christmas. Uncle Oliver, a very lonely old man, begrudgingly accepts but refuses to behave amicably towards Clara or Paul.

Spurred on by her young actor friend Pascal, Cricket, a young girl, accepts the starring role in a juvenile play. Her smashing success is overshadowed, however, by the death of her mother.