The East Side Kids, Muggs and Glimpy, return to their neighborhood after being in the army. Muggs, who has been honorably discharged with a physical defect, keeps his condition a secret. Meanwhile, another East Side kid, Danny, is in jail for stealing medical supplies from a warehouse where he works. Muggs meets a new gang member, Spider, who flaunts his wealth, and Muggs pretends to be a tough guy, boasting about his own dishonorable discharge for theft. Spider confides in Muggs that he's been stealing supplies from the warehouse and selling them to Larry, who runs a nightclub where Muggs' sister performs. However, when Spider learns that Muggs knows about the operation, he's killed by Larry's henchman, Fingers. The police then suspect Muggs of murdering Spider.
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Two East Side Kids, Muggs and Glimpy, return to their neighborhood after serving in the army, with Muggs hiding a secret: he's been honorably discharged due to a physical defect.
