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Upon returning from four years of military service overseas, Michael Lanyard, the reformed jewel thief known as "The Lone Wolf," is greeted at the airport by Jameson, his valet, and police inspector Crane, who remains skeptical about his reformation. On the night of Lanyard's reunion with his sweetheart, Carla Winter, Crane comes to Carla's apartment to question him about the theft of a famous sapphire. After Crane departs, the lovers are interrupted by Carla's sister, Rita Hale, who is distraught because her husband Dick is leaving her for Lili, a dancer at the Marquis Club. When Carla prods Lanyard to try to reason with Dick, he reluctantly leaves Carla and journeys to the Marquis Club. Unknown to Lanyard, Stonely, the club's owner, has hidden the sapphire in Lili's headdress and summoned Lal Bara and the Prince of Rapur, the Indian potentates from whom the stone was stolen. After Lili finishes her performance, Dick and Lanyard go to her dressing room and discover that she has been murdered and the jewel stolen. Stonely accuses Lanyard of murder and sends for Crane, but Lanyard escapes before the inspector arrives. Disguising himself as a chauffeur, Lanyard kidnaps the potentates and holds them prisoner at Carla's apartment. After draping themselves in regal robes, Lanyard and Jameson impersonate the potentates and take up residence in their hotel suite, hoping that the thieves will contact them. Posing as Lal Bara, Lanyard offers a $150,000 reward for the sapphire, causing Stonely and Harvey Beaumont, his assistant manager, to stake out the hotel lobby waiting for the thief to appear. Soon after, Adam Wheelright, a jewelry merchant and fence, knocks at the potentates' door and announces that an unidentified man has asked him to act as go-between in selling the sapphire. After Wheelright departs, Beaumont approaches him in the hotel corridor and is shot and killed outside Lanyard's door. While Jameson hides the body, Lanyard instructs Carla to release her royal prisoners. Lanyard and Jameson then flee the hotel. When the manager discovers Beaumont's body, he summons Crane, who arrives just as the potentates enter and report their kidnapping. Still in disguise, Jameson and Lanyard visit Stonely at this club to inform him of Beaumont's murder, and Stonely directs them to Wheelright's shop. Before proceeding to Wheelright's, Lanyard places a two- way radio under Jameson's robe and sets it to the police frequency. Upon entering the shop, Lanyard loudly proclaims that he has no interest in bringing Beaumont's murderer to justice and only wants to recover the sapphire. As Wheelright removes the gem from his safe, the transaction is broadcast over Jameson's radio, causing Crane to speed to the store. Believing that Wheelright double-crossed him, Stonely arrives at the shop just as a mouse climbs up Jameson's leg and switches on the police broadcast. Realizing that he has been entrapped, Stonely flees but is apprehended by Crane. After the stone is recovered, Rita and Dick reconcile and the potentates reward Lanyard with a $25,000 check. As Carla and Lanyard finally settle in for a romantic evening, the building catches fire, forcing them to evacuate.