A Broadway choreographer (Fred Astaire) gets drafted and puts on a GI show with his girlfriend (Rita Hayworth) and producer (Robert Benchley).

On his uncle’s death Sir Henry Baskerville returns from abroad and opens up the ancestral hall on the desolate moors of Devonshire. Holmes uncovers a plot to have Sir Henry murdered by a terrible trained hound. First casting of Rathbone and Bruce as Holmes and Watson.

When the Lemon Drop Kid accidentally cheats gangster Moose Moran (Fred Clark) out of his track winnings, the Kid promises to repay Moose the money by Christmas. Creating a fake charity for “Apple Annie” Nellie Thursday, the Kid tricks his gang into donning Santa suits and “collecting dough for old dolls” like Nellie who have nowhere to live. Radio personality Marilyn Maxwell assists as the Kid’s girlfriend, while William Frawley and Jay C. Flippen play the lovable, gruff crooks that fall for the Kid’s Santa scam.