An American pilot with a top-secret invention is kidnapped by foreign agents.

Rich playboy Drogo Gaines is in imminent danger of marrying a gold digger, and escapes by feigning insanity. The joke's on him when he wakes up in an asylum full of comical lunatics. There he befriends Colonel Carraway, and together they escape, catching a ride with a beautiful blonde who proves to be Penguin Moore, carnival owner.

The town's leading citizen becomes a homicidal maniac after his wife deserts him.