After his recent release from jail, The Penguin has started his own protective agency and is thwarting small time hoodlums everywhere he goes. Batman & Robin decide to send in an undercover Alfred to spy on the newly reformed Penguin and his recently acquainted high society friends. However, the Penguin has anticipated Batman and Robin's every move and manages to give them a makeover into wanted men instead of him.

Already wanted for a robbery they didn't commit, Batman and Robin fake their own deaths with a little help from Commissioner Gordon and Chief O'Hara. They even allow the Penguin to take hold of the Batmobile, now renamed 'Birdmobile' in order to keep track on them via a hidden camera.