The Vagabond Prince is set in Bothalia, one of those mythical Balkan kingdoms which proliferated in pre-1920 films. Promised in marriage to Princess Athalia (Katherine Kirkwood), whom he has never met, Bothalian Prince Tonio (H.B.Warner) yearns to experience "real" life before committing himself to matrimony. Tonio heads to San Francisco, where he takes a menial job at a Barbary Coast dive. Here he rescues Fluffy (Dorothy Dalton), a cabaret singer, from the unwanted advances of a masher. Impressed by Tonio's courtly European manners (but not yet aware that he is a prince), Fluffy does not reveal that she is a "sinful" saloon chirp but pretends instead to be an artist's model. Each unaware of the other's true identity, Tonio and Fluffy become engaged. When the truth comes out, Fluffy nobly walks out of Tonio's life, rather than force him to relinquish his crown for her sake. But Tonio's waterfront pals kidnap Fluffy and bundle her off to Bothalia, where she and the Prince are finally wed.
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