Dr. Claw tries to frame the gypsies of Freedonia for the theft of the Royal Coat of Arms. So Gadget investigates the gypsies while Penny and her new friend, Sonya, try to find the real thief.

Gadget heads for Mexico, where he must stop "The oldest Mayan artifact known to exist," the Emerald Duck, from falling into the hands of a M.A.D. agent -- a Mexican bandit named Macho Miguel. The Emerald Duck is the key to activating a powerful and ancient weapon.