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Even as their basic civil liberties were being eroded by the Nazis, German audiences continued to flock to such escapist films as Der Lachdoctor. The title translates as Laughter is the Best Medicine, and the film sets about to prove that theory. Set in provincial Bavaria, the plot concerns a quack doctor (Paul Heidemann) who peddles a "miracle drug" consisting of water and very little else. The charlatan is opposed at every turn by the local general practitioner (Weiss Ferdel) who seems to be acting out of jealousy rather than professional ethics. The fun really begins when a gorgeous female doctor (Carla Rust) enters the scene, raising the temperatures of everyone concerned.