Several attempts to break a drug ring headed by "The Indian" fail. Serpico intentionally tips off The Indian's go-between Grace to an upcoming raid. He gets suspended but gains The Indian's trust. Serpico wants to meet and personally bust The Indian. Serpico reunites drug courier Heather with her father, and he has romantic interest in the hospital doctor caring for Heather.

Jenny, one of Serpico's ex-girlfriends, helps two men steal furs in the garment district. With Jenny's help, Serpico passes himself off as a fur designer. A sting operation fails and Serpico realizes he told Jenny about it; he confronts her and Jenny reveals that she was blackmailed. When Jenny double-crosses the robbers, her life is in jeopardy.