On April 9, 1865, Jim Steed, a celebrated war correspondent, telegraphs his story, announcing the surrender of General Robert E. Lee and the end of the American Civil War, to his newspaper, Leslie's Weekly.  Later, Jim travels to Berlin, where he is invited to a ball hosted by the Prussian leader, Count Otto Eduard Leopold von Bismarck.

Jim quickly runs afoul of Bismarck's close advisor, Count Erik Von Bohlen, and tells Anna Maria, better known as Salome, the noted Austrian ballerina, that Von Bohlen is interested in her.  Using that information, Salome agrees to entertain Von Bohlen in order to uncover Bismarck's plans for the anticipated Prussian invasion of Austria.

On the first day of the Austrian-Prussian war, Jim witnesses the death of an Austrian prince who was romantically involved with Salome.  Von Bohlen then arrives and threatens to have Jim executed for looting, but Jim informs him that he has found papers on the dead prince which prove that Von Bohlen divulged military secrets to Salome.

Upon his release, Jim then helps Salome and her music teacher, Professor Max, escape from Berlin to America.  After traveling cross-country for twenty-eight days, the three arrive in the western desert town of Drinkman's Wells, where they are taken in by Madame Europe, a hotel proprietor.  In order to raise enough money to travel to San Francisco, they put on a show, and the beautiful Salome is an immediate hit with the local miners.  Her performance is interrupted, however, by "Stagecoach" Cleve Blunt, an ex-Confederate soldier turned bandit, who steals the show's receipts.  Despite a recent marital proposal by Jim, Salome is immediately attracted to and becomes involved with Cleve, as he is a double for her deceased Hapsburg prince.  At Salome's urgings, Cleve returns all his stolen loot, and in gratitude, the townspeople rename Drinkman's Wells "Salome, Where She Danced."

Salome, Jim and Max then travel to San Francisco, with Cleve and Madame Europe joining their theatrical troupe.  Unable to find sponsorship for their show, Jim suggests that Salome become acquainted with Colonel Ivan Dimitrioff, a wealthy Russian diplomat.  Cleve soon becomes jealous of Salome's involvement with Dimitrioff, who has gone so far as to give the ballerina a painting by Rembrandt.

Upon the suggestion of his advisor, Dr. Ling, a Scottish-trained Chinese physician, Dimitrioff arranges a position for the newly pardoned Cleve with a stagecoach line, in hopes that distance will remove his romantic rival from Salome's heart.  Instead, Cleve joins up with his old outlaw gang, only to be convinced once more into going straight by Ling and Salome.  As a parting gift, Salome gives Cleve the locket with her picture inside that her Hapsburg prince once owned.  On the night of her San Francisco opening, Von Bohlen arrives in town with a diplomatic warrant for Salome's arrest.  Cleve comes to Salome's defense, however, and kills the Prussian count in a sword fight.  Though she offers to return to Virginia with him, Cleve rejects Salome and announces his plans to return to his life as a highwayman.

Despite Dimitrioff's threats, Salome refuses to dance that night and retires from the stage.  With Jim and Ling's help, Cleve escapes with Salome aboard the Russian's private carriage.  Though Dimitrioff is aware of their plot, he allows the couple to leave with his blessings.