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John “Scottie” Ferguson is a retired San Francisco police detective who suffers from acrophobia and Madeleine is the lady who leads him to high places. A wealthy shipbuilder who is an acquaintance from college days approaches Scottie and asks him to follow his beautiful wife, Madeleine. He fears she is going insane, maybe even contemplating suicide, because she believes she is possessed by a dead ancestor. Scottie is skeptical, but agrees after he sees the beautiful Madeleine.

The morning of a small town Labor Day picnic, a drifter (Hal Carter) blows into town to visit an old fraternity buddy (Alan Benson) who also happens to be the son of the richest man in town. Hal is an egocentric braggart - all potential and no accomplishment. He meets up with Madge Owens, the town beauty queen and girlfriend of Alan Benson.

Alonzo Hawk is a mean-spirited property developer who has bought several blocks of land in the downtown district in order to build a gigantic shopping mall. There is one problem however; an elderly widow named Steinmetz won’t sell the one remaining lot that Hawk needs to proceed with his scheme. So he resorts to all manner of chicanery, legal or otherwise, to get it. Fortunately, the widow Steinmetz has an ace up her sleeve in the form of Herbie, the miraculous Volkswagen.

Linus and Davis Larrabee are the two sons of a very wealthy family. Linus is all work — busily running the family corporate empire, he has no time for a wife and family. David is all play — technically he is employed by the family business, but never shows up for work, spends all his time entertaining, and has been married and divorced three times. Meanwhile, Sabrina Fairchild is the young, shy, and awkward daughter of the household chauffeur, who has been infatuated with David all her life, but David hardly notices her — “doesn’t even know I exist” — until she goes away to Paris for two years, and returns an elegant, sophisticated, beautiful woman. Suddenly, she finds that she has captured David’s attention, but just as she does so, she finds herself falling in love with Linus, and she finds that Linus is also falling in love with her.