Frank Drebin is persuaded out of retirement to go undercover in a state prison. There he is to find out what top terrorist, Rocco, has planned for when he escapes. Frank’s wife, Jane, is desperate for a baby.. this adds to Frank’s problems. A host of celebrities at the Academy awards ceremony are humiliated by Frank as he blunders his way trying to foil Rocco.

Toulon, a puppet maker, discovers an ancient Egyptian potion and uses it to bring his creations to life. His puppets become murderous little demons and escape. Distraught, the master takes his life. Years later, psychics tune into the existence of the monstrous marionettes and set off to stop them.