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In 1933, during the [[Great Depression]], a young [[orphan]] named Annie is living in the Hudson Street Orphanage in [[New York City]]. It is run by Agatha Hannigan, a cruel alcoholic who forces the orphans to clean the building daily. With half of a locket as her only possession, she remains optimistic that her parents, who left her on the doorstep as a baby, will return for her. Annie sneaks out with help from laundry man, Mr. Bundles, adopting a stray dog which she names Sandy. However, Annie is escorted back to the orphanage.
Grace Farrell, secretary to billionaire [[Oliver Warbucks]], arrives to invite an orphan to live with Warbucks for a week, to improve his public image. Annie is chosen and she and Sandy travel to Warbucks' mansion, meeting his many servants and two bodyguards, Punjab and the Asp. Warbucks, at first dismissive of Annie due to her being female, is charmed into letting her stay. He takes Annie and Grace to [[Radio City Music Hall]] to watch a movie, ''[[Camille (1936 film)|Camille]]'', and Warbucks
Warbucks reveals his plans to Annie, even offering her a new locket, but she declines. She explains the purpose of her broken locket and her hope that her parents will return with the other half. Warbucks appears on Bert Healy's radio show and offers $50,000 to find Annie's parents. This causes mass hysteria with many would-be parents appearing to claim the money. To escape the madness, Warbucks flies Annie to the [[White House]] in Washington, D.C., introducing her to President [[Franklin D. Roosevelt]] and his wife [[Eleanor Roosevelt|Eleanor]]. Roosevelt informs them of his plan to introduce a social welfare program to help America's impoverished and asks Warbucks to head it; Annie encourages him to help. Upon returning home, Annie is disheartened when Grace reveals none of the potential parents knew about the locket.
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