Military doctor Katz loses to his servant Josef Švejk at cards. Švejk steals a dog for his new superior, Lieutenant Lukáš. While walking his dog, Lukáš meets Colonel Kraus, who is displeased to discover that Lukáš is taking his dog with him. As punishment, he sends Lukáš to a marching company in Budějovice. Lukáš is accompanied by Švejk, who first insults a general who is travelling in civilian clothes in the same compartment. Then Švejk unexpectedly stops the train by pulling the emergency brake. For this act, he is brought to Tábor for questioning. Before the questioning is over, Švejk's train leaves and he has to walk to Budějovice...

The happenings in a shoe factory serve as a not very thinly veiled examination of the pros and cons of both socialism and democracy.