M.A.D. engineers an android replica of Inspector Gadget that is used to steal from Metro City's banks in order to have the real Gadget framed for armed-robbery. With our hero wrongfully incarcerated, Dr. Claw sets his sights on kidnapping the Shah of Freeland and demanding a hefty ransom for his release.

Inspector Gadget is assigned to look into a case of some missing oceanographers who were searching for an undersea city when they disappeared.