George Bailey has spent his entire life giving to the people of Bedford Falls. All that prevents rich skinflint Mr. Potter from taking over the entire town is George's modest building and loan company. But on Christmas Eve the business's $8,000 is lost and George's troubles begin.

Blondie and Dagwood are in charge of operations at a mountain motel. The elderly owners of the establishment are in danger of losing their life savings. Among other things, arson threatens.

Baby Dumpling, the six-year-old son of Blondie and Dagwood Bumstead disappears from sight during his first day at school. While Dagwood frantically combs the city in search of the boy, Baby Dumpling spents a nice, safe afternoon with poor little rich girl Melinda Mason, who with her new playmate's help arises from her sickbed to walk across the room for the first time in months.

Dagwood inadvertently gets cornered in to resigning. When his wife Blondie tries to ask Dagwoods boss Mr. Dithers for his job back, he ends up hiring her instead. This doesn't sit too well with Dagwood. Blondie's sister comes to visit, and Dagwood is put in a compromising situation with another woman.

Dagwood wants to join the trout club and Blondie wants a fur coat. Jealousy reigns when Dag's old girlfriend Joan shows up, but nothing else matters when a drawing at the movie theatre provides money for the coat.

The Bumstead family is off to see relatives in the country when Blondie runs into Charlie and Millie, an eloping couple needing her help.

Dagwood brings home a pedigreed Great Dane which an important company client wants and which Blondie enters in the big dog show.

Things get under way when Blondie Bumstead demands that her husband request a raise from his boss Mr. Dithers, so that she can afford to hire a maid. But Dithers has no time for any salary disputes: his construction firm is currently stuck with an unsaleable old mansion that is rumored to be haunted. To disprove this theory, Dithers asks the Bumstead family to spend a night in the crumbling old house, throwing a retinue of servants into the bargain.

Dagwood Bumstead must receive a college diploma or lose his job with the Dithers Construction Company. Not wishing to be separated from her husband, Blondie enrolls in college as well. But Leighton College rules stipulate "No Married Couples", forcing Blondie and Dagwood to pretend that they're not married. This causes quite a dilemma when coed Laura Wadsworth begins flirting with Dagwood and Rusty Bryant does the same with Blondie. And Blondie's discovery of a very pleasant secret threatens to expose her and Dagwood's marital status too.

Blondie and Dagwood are about to celebrate their fifth wedding anniversary but this happy occasion is marred when the bumbling Dagwood gets himself involved in a scheme that is promising financial ruin for the Bumstead family.