Molly (Martha O’Driscoll), her brother, Slats (Abbott), and his pal, Oliver (Costello), are taxi dancers at the Miramar Ballroom. As a publicity stunt, Slats plants an article about Molly claiming her ambition is to earn enough money to attend staid, all-girl Bixby College. Bixby’s progressive dean offers Molly a scholarship. Molly accepts on the condition that Slats and Oliver come along too as campus caretakers. But the pompous Chairman threatens to foreclose on the school’s mortgage if Molly isn’t expelled. Together, the trio, with the help of some new friends, concocts a scheme to raise enough money to save the school. The plan involves a bet on the Bixby basketball team, which is playing in a game rated at 20 to 1 by the local bookie. But the bookie has other plans for their dough and hires a group of ringers to step in for the opponents. All is not lost, at least while Oliver has the chance to turn things around for his friends-one way or another.

A scientist working on cures for rare afflictions, such as a bone softening agent made from molds to allow him to correct the spinal deformity of his nurse, finds the physical causes of lycanthropy in wolf-man Larry Talbot and of vampirism in Count Dracula, but himself becomes afflicted with homicidal madness while exchanging blood with Dracula.