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On Christmas Eve in Europe in 1944, at the height of [[World War II]], former [[Broadway theatre|Broadway]] star Captain Bob Wallace and aspiring performer Private Phil Davis entertain the 151st division with a [[soldier's show]]. Major General Thomas F. Waverly, who has been reassigned, delivers an emotional farewell. AfterShortly after Waverly departs, enemy bombers attack. Phil is wounded when he pulls Bob away from a collapsing wall. Bob asks how he can pay back Phil for saving his life. Phil suggests they become a duo act., and idea Bob dislikes the idea, but feels obliged to give it a try.
After the war, the duo becomes famous as performers and musical producers. Their old [[mess|mess sergeant]] writes asking theythem to view his sisters' singing act. While watching Betty and Judy perform at a Florida nightclub, Phil notices Bob's interest in Betty. The four meet after, and Phil and Judy seem to hit it off. Betty apologetically confesses that it was actually Judy who wrote the letter. Bob is impressed by Judy's resourcefulness though Betty thinks he is being cynical .[[Image:Bing Crosby and Danny Kaye in White Christmas trailer 3.jpg|left|thumb|275px|Bing Crosby as Bob Wallace and Danny Kaye as Phil Davis]]
Learning the sisters' landlord is falsely suing them for a damaged rugdamages and has called the cops, Phil gives them his and Bob's train tickets to New York City. The group flee to the train. The girls get Phil and Bob's sleeping quarterscompartment while the guys sit up all night in the [[Bar car|Club Car]], much to Bob's chagrin.
The girls convince Phil and Bob to forgo New York and spend Christmas in Pine Tree, [[Vermont]], where they are booked as performers. In Vermont, they discover the tourists have left due to no snow. Arriving at the empty Columbia Inn, Bob and Phil are aghast to discover that General Waverly is the nearly-bankrupt owner, having invested his pension and life savings. Phil and Bob decide to stage a large musical at the Pine Tree to attract guests. Betty and Judy are included with the other performers. Meanwhile, Betty and Bob's romance starts to bloom.
Later, Waverly receives a rejection letter when he tries to rejoin the army. To prove to the General he is not forgotten, Bob calls Broadway producer Ed Harrison, an old Army buddy, for help. Ed's suggestionidea would exploit the General's misfortune and Bob's kindness, and says would be free advertising for Bob and Phil. Bob strongly rejects thehis ideasuggestion. Unfortunately, the eavesdropping housekeeper only partially hears the conversation and thinks Bob has agreed to Harrison's ideascheme. She relays this to Betty, who silently becomes angry at Bob. Betty's sudden coolness baffles Bob.
Phil and Judy stage a phony engagement hoping it willto reunite Betty and Bob. However, this backfires when Betty leaves for a solo singing gig in New York. When Phil and Judy tell Bob the truth, he hurries to New York to tell Betty. They partially reconcile, but Bob runs into Harrison before he can explain everything to Betty. When Bob goesappears on Harrison's show to request the entire 151st division to secretly join him at Pine Tree to surprise General Waverly, Betty realizes she misunderstood Bob's intention. Betty returns to Vermont in time to join the show.
On Christmas Eve, the soldiers surprise General Waverly at the show with a rousing chorus of "The Old Man". During the performance, Betty and Bob reconcile, and Judy and Phil realize they are in love. As everyone sings "White Christmas", a thick snowfall at last blankets Vermont.
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