Teddy Lemke and six year old Ulli are lodgers at Miss Biermann's house. Ulli believes Teddy is his real father and Teddy takes care of him as such. One day Ulli discovers a child's clown outfit in the attic and Teddy reluctantly tells the boy his story. Teddy was once a famous clown, and along with his son as Teddy and Teddy, he entertained the masses.

But when his young son died, Teddy forever went into retirement. Ulli convinces Teddy to come out of retirement. The two join up as a clown team in the spirit of the original Teddy and Teddy. They are an instant success and everything seems to be idyllic but then Teddy gets word that Ulli's mother, now married, wants her boy to go and join her in America.