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Peggy Stanton, who lives in a cottage with her invalid father, intrigues her wealthy friend Tom Hamilton with legends about Captain Kidd. With Mammy Lou, an oracle, they hunt for buried treasure on a nearby island, but Mammy, frightened by a supposed ghost, leaves them stranded there for a night. After Peggy's father insists that they marry, Tom's father tries to get the marriage annulled, but he dies. When Tom's uncle claims the estate by insisting that Tom was illegitimate, Tom renounces his name and leaves. Peggy's father dies, and years later, when her foster-father arranges a fashionable marriage for her, she reveals her marriage. He hires a lawyer to find her husband and secures an annulment, not knowing that Tom is the lawyer. After Tom visits Peggy, who falls in love with him again, they return to the island and find the papers stolen by Tom's uncle that prove Tom is the legitimate heir. They then happily resume their marriage.