Carlotta has been brought up in an Italian convent, unaware that she is the illegitimate child of American architect J. Winthrop Drake. When her mother, an Italian opera singer, dies, Drake finally learns of Carlotta's existence and brings her back to New York with him without revealing the truth of their relationship.

King Rudolph of Rugaria sends his son, Prince Boris, to America to marry into wealth so that the country can recover from its financial difficulties. Rich Mrs. Hanway, eager to have her daughter Althea become a princess, takes her with Boris to Rugaria.