Father Chuck O'Malley (Bing Crosby) has unconventional ways of dealing with parish life in the Catholic Church but won the admiration of his bishop and is asked to take on another task that seems impossible. St. Mary's church and school are an inner city facility that lacks the finances to provide an adequate school for its needy children. There Father O'Malley encounters Sister Mary Benedict (Ingrid Bergman) who believes that God will provide for them despite their debt and crumbling building. Even Father O'Malley has his doubts that the church and school need to be saved. He believes they could be better served at another parish and school. But the sisters look to businessman Horace P. Bogardus (Henry Travers) who not only built a new building across the street but also wants the church and school torn down for his parking lot. They believe God will convince the hardened businessman to help the school. And they want Father O'Malley to help convince him.