Charles Dreyfus, who has finally cracked over inspector Clouseau's antics, escapes from a mental institution and launches an elaborate plan to get rid of Clouseau once and for all.

The Pink Panther diamond is stolen once again from Lugash and the authorities call in Chief Inspector Clouseau from France. His plane disappears en-route. This time, famous French TV reporter Marie Jouvet sets out to solve the mystery and starts to interview everybody connected to Clouseau.