Police Squad Lieutenant Frank Drebin is on vacation in Beirut when he disrupts a conference of America’s greatest enemies (Idi Amin, Muammar Gaddafi, Ayatollah Khomeini, Yasser Arafat, Fidel Castro, and Mikhail Gorbachev) who are trying to conceive a terrorist plan to humiliate the U.S. In Los Angeles, Officer Nordberg attempts to bust a heroin operation run by businessman Vincent Ludwig but is shot by Ludwig’s henchmen. Drebin returns to L.A. and is briefed on the case before visiting Nordberg in the hospital.
Nordberg provides cryptic clues, including a picture of Ludwig’s ship on which the deal had been organized. Frank also learns that Nordberg’s jacket tested positive for heroin. Police Squad is put in charge of security for the visit of Queen Elizabeth II to Los Angeles, and Captain Ed Hocken tells Drebin that he has 24 hours to clear Nordberg before word gets out and detracts from the Queen’s visit.
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Drebin visits Ludwig to inquire about the ship and Ludwig learns that Nordberg is still alive. Ludwig asks his assistant Jane, who is unaware of Ludwig’s criminal activities, to get close to Drebin and see what he knows. Jane provides Drebin with information he requested and the two begin falling in love. Ludwig meets with Pahpshmir, from the Beirut meeting, to discuss an assassination plot against the Queen.
Ludwig agrees to do it for $20 million and explains that he will use a beeper that uses post-hypnotic suggestion to make anyone an unwitting assassin. Ludwig attempts to have Nordberg killed at the hospital by hypnotizing his doctor, but Drebin successfully protects Nordberg. The doctor is killed in a comical fashion before Drebin can interrogate him. Drebin then breaks into Ludwig’s office to search for evidence. He finds a note from Pahpshmir to Ludwig which confirms his suspicions, but accidentally starts a fire that destroys the note and the office.
Drebin confronts Ludwig with his allegations at a reception for the Queen’s arrival, sparking chaos. Jane finds out the plan will be executed at a baseball game at Anaheim Stadium and informs Drebin. Police Squad arrives at the stadium, and chaos ensues as Drebin tries to stop the assassination plot. In a dramatic and comedic turn of events, Drebin saves the Queen’s life and apprehends Ludwig, ultimately reinstating himself to Police Squad.