For more than 50 years, Pauline Neuber has directed the "Olympia" theatre, but lately, business has been bad. It appears that no one will be able to make it better either: the audience doesn't seem to like the plays; the press even less so; and the shareholders of the theatre want to sell their shares. In short, the "Olympia" has one foot in the grave. Erich, grandchild of Pauline and always underestimated by her, gets to know Hella Bergson, the daughter of the theatre critic Peter Bergson, and falls in love with her - but doesn't have an idea whose daughter she is. He plays her some melodies from the first operetta he's ever composed and Hella convinces him to have the operetta performed in the "Olympia". During rehearsal of the operetta, however, a fight breaks out between Erich and Hella over a stupid misunderstanding.

The wintry mountainscapes of Bavaria provide the backdrop for this airy German comedy. The story is set in motion when young clerk Boenecke (Richard Romanowsky) accidentally delivers a check to the wrong bank. Boenecke's boss Schumann (Walter Steinbeck) suspects the clerk of embezzlement -- especially since our hero has taken off on an extended Alpine vacation with his sweetheart Hilde (Magda Schneider). Before this comic chain reaction can be straightened out, hero and heroine have become entangled with a gang of female pickpockets. Essentially a "moonlight and strudel" confection, Winterachtstraum was perfect escapist entertainment for Magda Schneider's legions of fans.

Tenor Enzo Curti, a widower with a young child, falls in love with a secretary from New York. Liselotte has experienced disappointment in her first love, Helmut, an ocean liner officer. She marries Enzo Curti, but later, when she meets Helmut again, she experiences emotional stress as love struggles with a sense of duty in her heart.