The famous Pink Panther jewel has once again been stolen and Inspector Clouseau is called in to catch the thief. The Inspector is convinced that 'The Phantom' has returned and utilises all of his resources – himself and his Asian manservant – to reveal the identity of 'The Phantom'.

Chief Inspector Jacques Clouseau is dead. At least that is what the world—and Charles Dreyfus—believe when a dead body is discovered in Clouseau's car after being shot off the road. Naturally, Clouseau knows differently and, taking advantage of not being alive, sets out to discover why an attempt was made on his life.