In a war between Bulgaria and Serbia, the Serbian soldiers are fleeing. A Serbian soldier surprises RAINA, the heroine, by entering her bedroom for shelter. The Serbian officer is CAPTAIN BLUNTSCHLI, a Swiss mercenary fighting on the Serbian side. Raina Petkoff had been dreaming of her fiancé SERGIUS and how valiantly he led the Bulgarians to victory. Bluntschli, on the other hand, is a soldier who prefers a supply of chocolates to bullets. He gives an account to Raina about the Bulgarian victory. According to him, it was a fluke due to the fact that someone had forgotten to supply the Serbian Army with ammunition. Despite shattering her romantic notions of Sergius, when pursuers enter the house, Raina hides Bluntschli successfully.
Four months later, after the war is over, MAJOR PETKOFF and Sergius receive a warm welcome from MRS. PETKOFF and Raina. The two men talk about hearing stories about a Swiss soldier's escape and how a young girl had given him shelter. Soon after, Captain Bluntschli himself arrives to return the Major Petkoff's coat - the coat that Raina had lent him before escaping. She and her mother pretend not to know Bluntschli when Petkoff and Sergius persuade him to stay for lunch.
After lunch, Bluntschli helps Petkoff and Sergius make arrangements for the transport of troops. Major Petkoff asks for his coat. Raina, who had put her picture in the pocket inscribed to her "Chocolate Cream Soldier," is apprehensive that her father will discover the photograph. Sergius eventually learns the true identity of the "Chocolate Cream Soldier" and challenges Bluntschli to a duel. Raina prevents this by expressing her real feelings for Bluntshcli. .