In Babes in Arms, young, poor apprentices are performing in summer stock theatre at the Surf and Sand Playhouse in Cape Cod. Led by the handsome Val, they have written a revue in order to raise money for the theatre's kind co-owner, Bunny. She has to work for the other owner, Fleming, because of the money her father owed him. However, the apprentices revue is almost not performed because Fleming decides to put on a horrible play, The Deep North. After stumbling through various romantic relationships, the apprentices unite to turn The Deep North into shambles. Thus, the show closes and they are able to perform their revue which turns out to be a great hit and raises the money for Bunny.