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In the spring of 1918, Swiss modiste Madeleine Goddard returns to Stockholm after an excursion to Paris to buy dresses. Madeleine, who is a spy for the Nazis, then visits her German contacts and gives them the information she has gathered on Allied troop movements. Madeleine's information is cleverly sewn into the gowns she transports, and the Germans believe that she is one of their top spies. Unknown to them, Madeleine is actually a French double agent, and so she resolves to learn the identity of the new German secret service section leader who is being stationed in Stockholm. While Madeleine confers with her confederates, two German citizens cross the border into Switzerland. One is Dr. Muller, who is to reorganize the spy network of which Madeleine is a part, and the other is Baron Karl Von Marwitz, a deserter from the German Navy. While at a nightclub with her frequent escort, English secret service agent Bob Carter, Madeleine exposes the trick behind Von Marwitz's game of predicting what a girl will say after he kisses her. Intrigued by Madeleine's beauty and cool demeanor, Von Marwitz visits her shop the next day in the company of Lupita, a Brazilian socialite. Von Marwitz quickly tires of the temperamental Lupita and begins asking Madeleine to go out with him. When she continually refuses his requests, he begins to buy all of the stock in her shop until finally she gives in. Madeleine gives her German contacts information about an Allied counter-offensive, then begins seeing Von Marwitz. Despite their different nationalities, the couple quickly fall in love, much to the dismay of Bob, who returns to Stockholm after a brief journey to London to investigate Madeleine's trustworthiness. On the night Von Marwitz proposes to her, Madeleine's faithful porter and co-conspirator, Anatole Bergen, is murdered. Shaken by Anatole's death, Madeleine confers with Muller and the others, who tell her that the information she provided proved disastrous for the German Army. Muller orders her to go to Paris immediately and determine whether her French contacts are to be trusted. After a difficult journey, Madeleine reaches Paris, where she is secretly greeted by a French official and given the medal militaire for her service to her country. Upon her return to Stockholm, Madeleine deduces that Von Marwitz is the German secret service leader, and he reveals his knowledge that she is actually a French spy. The lovers are glad to be rid of the lies between them, but acknowledge with heavy hearts that their dream of a life together can never be realized. Madeleine rushes to Bob, who promises to help her escape from Stockholm and the Germans, while Von Marwitz is simultaneously planning her capture. The next day, Bob engineers Madeleine's arrest by the Swedish police, thereby foiling Von Marwitz's plan to apprehend her quietly. Madeleine is deported, but once the boat she is on has sailed out of Swedish jurisdiction, it is stopped by a German submarine. Von Marwitz boards and arrests Madeleine for being a French spy, but his plans are once again foiled by Bob's cunning plans. Disguised as a tramp steamer, a British destroyer enters the scene and engages the submarine in battle. The Germans are defeated, Madeleine is rescued and Von Marwitz is captured. Madeleine is assured that Von Marwitz will not be shot, but will instead be detained until the end of the war, and with the hope of a future together, the lovers wave goodbye as Von Marwitz is taken aboard the destroyer.