In order to keep a close eye on the Penguin (and hopefully locate the stolen chain mail armor), Batman and Robin rejoin Penguin's movie efforts. The next part of his film is to take place in medieval times. Therefore, Penguin has the Dynamic Duo dress in armor suits, but only to trap them with a giant magnet while he snatches top-secret papers from the Hexagon. Batman and Robin free themselves and follow the villain, but after a losing battle with him, the Penguin has them hauled off as scrap metal to be crushed.

Batman and Robin get back on the Penguin and Marsha, Queen of Diamonds', trail. Several escaped lizards lead them to the villains' hideout, where they find the stolen chain mail suits. Remembering an earlier clue from the Penguin, they head to the federal subtreasury to find that the Penguin, Marsha, and their cronies have broken into a vault containing ten million dollars in gold bullion. The Dynamic Duo shut the vault door on the criminals and try to prepare for every breakout scenario, but the Penguin has a daring plan of escape that no one could have counted on.