The period is the early 1900's and is set in what was Indian Territory, soon to become the State of Oklahoma. The action opens with Curly, a cowboy, calling at Aunt Eller's farm to invite Laurey to the Box Social, however, Laurey has heard rumours linking Curly with Gertie Cummings, so to spite him she decides to go with Jud Fry, the rather sinister hired hand.

Ali Makim, a pedlar arrives at the farm with Ado Annie, the daughter of another farmer, Andrew Carnes. Ado Annie tends to be in love with whichever man is handy at the moment and thinks Ali wants to marry her. Laurey reminds her she is "promised" to Will Parker - this makes no difference until Will arrives with $50 he has won at a rodeo. Andrew Carnes has promised that Will can marry his daughter if ever Will earns $50. However Will has spent the money on presents for Annie, so Andrew decides Annie should marry Ali, much to Ali's distress.

The Box Social is held at Ike Skidmore's ranch and Aunt Eller proceeds to auction the girls' lunch hampers to raise funds for the schoolhouse. Ali Hakim has cunningly contrived to provide Will Parker with $50, but Will bids the lot for Annie's hamper, so it costs Ali another $51 to steer clear of matrimony. The bidding for Laurey's hamper soon develops into a contest between Jud and Curly, which Curly wins by selling most of his possessions. This, and a frightening meeting with Jud makes Laurey realise her affection is really for Curly.

Laurey and Curly get married, but before they leave on their honeymoon, Jud appears to interrupt the festivities. Jud and Curly fight and Jud dies. Cord Elam, the Federal Marshall, tells Curly to give himself up, and things look bleak for the newlyweds. However, Andrew Carnes happens to be the local Judge, so all ends happily.