Soldiers Bob Wallace and Phil Davis served under General Henry Waverley in World War Two and, ten years later, they are still working together in a popular song and dance duo, Wallace and Davis. When they meet the singing sisters, Betty and Judy Haynes, Phil becomes enamoured with the beautiful Judy, while Bob is more reserved about his feelings for Betty. The two men follow the sisters up to their seasonal engagement at The Columbia Inn in Vermont. They discover the inn is owned by General Waverley but, unbeknownst to him, the inn is struggling to survive. With the help of Martha, the concierge, and the General’s granddaughter, Susan, Bob, Phil, Betty and Judy decide to put on a big show to draw in business.
Bob arranges for his old friend Ralph Sheldrake to bring the General’s former troops up to Vermont to support the show. Betty overhears Bob’s plans and misinterprets his intentions, believing that he wants to buy the inn instead. Confusion ensues as Betty leaves to go back to New York alone. Bob follows her to attempt to reconcile but, believing he has lost her, he goes on the Ed Sullivan Show to reach out to his former comrades. Back in Vermont, the rehearsals are coming to an end and the General is convinced to wear his uniform to watch the show. He is moved to see his former men return to support him and decides to put his efforts into making the inn a success. Betty returns to apologize to Bob and the couple finally declare their love for each other. With the show a huge success, Bob leads the whole theater in a rendition of “White Christmas”.