Patricia, a young British woman inherits an estate in rural Italy, and gives up her job as a schoolteacher. Soon after she arrives she offends the village where she now plans to live by accidentally throwing away a sacred painting of the Madonna which they consider to be lucky and a protector of the community. To redeem herself she goes out in search of the painting with the assistance of a British ex-army Captain, hoping to return in to the village.
A romance begins between her and the Captain, but a gang of street urchins steal his money. The Captain has painted over the Madonna with his own painting of The Laughing Cavalier before it disappeared.
In Naples she is first cheated by Johnny Lester, a British spiv (a petty criminal who deals in illicit goods), and his tiny Italian gangster sidekick, but later receives his help to steal back the painting from a wealthy collector, Julian Migone, who has taken the Madonna to his cliff-top villa on Capri.
Patricia, pretending to be a rich countess, travels alone to Capri by boat but the moneyless Captain is given a ticket by one of the young Naples street urchins. She plays along with Migone's attempt to seduce her in order to get the painting back.
She and the Captain are stopped by police when trying to return on the boat, and their luggage is searched, but the painting has disappeared. It has been stolen by Johnny who successfully gets it back to the mainland.
Patricia returns the painting to the church where it is received with much ceremony.