The secretary Sally Reynolds is hired by the owner of the Dolls, Inc., the former puppet master Mr. Franz. Soon she meets the salesman Bob Westley and they fall in love with each other. When Bob proposes to marry Sally, he decides to inform Franz, but mysteriously vanishes. Sally notices that Mr. Franz has a new doll in his private collection that looks like her fiance and goes to the police telling that somehow Mr. Franz is shrinking people. But Sgt. Paterson, who is assigned to the investigation, goes to the factory with Sally but is skeptical.