Mandarin has trouble win his son, Gene Khan, while trying to retrieve the rings. Tony Stark as Iron Man battles his invention that Obadiah transformed into a weapon. Mandarin steals the ring of Obadiah, and fights Iron Man. Back in Mandarin's lair it is revealed that Gene Khan has become The Mandarin.

A.I.M. uses a dying Living Laser to power up their newest creation- the Mental Organism Designed Only for Conquest. When Iron Man can't beat MODOC's mental powers, it's up to the Living Laser to save his life.

After Tony lets Rhodey take the Iron Man suit out for a spin, it falls into the hands of Happy Hogan. Now, Tony must help Hogan take down a Maggia plot, all while not revealing his secret.