Captain Harris bungles an operation to catch the Clown Gang and his punishment is to return to the police academy and train new recruits. His favorite grads also return, along with the Clown Gang, who become his new recruits.
Unbeatable lady wrestler Amazona is on a crime spree in her free time. Sweetchuck offers to go undercover at her gym because he's fallen head over heels in love with her.
Harris orders Mahoney and co protect a cursed mummy as it is being returned to Egypt. The Chief tells Harris to join "Operation Egypt" as well. Three crooks board the same cruise ship, hoping to steal the priceless artifact.
With Harris in hospital, Proctor becomes acting captain and is assisted by Sgt. Copeland. Mr. Sleaze and his sleazebags kidnap the Mayor and demand that their cohorts are set free.
Zed tracks down the Highway Robbers, who turn out to be his own cousins Ned and Ed and his Aunt Bertha. And after he gets hit on the head, a confused Zed joins up with his family.
Madam Zelda puts a spell on Sweetchuck when he arrests her for phony fortune telling. Thanks to the Pirate Curse, anyone close to Sweetchuck will have bad luck, and that includes the entire precinct.
House is excited to work security duty at Galaxy Studios, but when the giant animatronic "Awesome Ape" is stolen by thieves and used to commit crimes, 'Fifi La Callahan' ends up in it's clutches.
Mahoney catches young Billy joyriding, who is promptly sent to Lassard's new Camp Academy for inner city kids. A group of rich criminals located right next to the camp want to get rid of it as soon as possible.
The Magnificent Mystopholes wants to steal the Cyclops Diamond and use it to hypnotize hundreds of people at once. He puts Hightower under his spell and makes him steal the three keys to the diamond's display case.
The Space Program needs nine good cops to fly an experimental space shuttle control vehicle into orbit. Harris manipulates the graduates computer files to make sure they go into orbit for nine months. But Harris and Proctor end up on the flight instead of Tackleberry and Callahan. Dr. Vice overrides Mission Control and makes the shuttle crash land in the Amazon Jungle, but Zed is convinced they've landed on Mars.
Sweetchuck's younger, taller, and more handsome brother Doug, aka Agent 839 of the FBI, visits the Academy while on a case. Feeling inadequate, Sweetchuck hides from his brother. Mahoney and the gang try to build up his self-esteem by pretending to be robbers, but their good intentions backfire and get mixed up with the secret document stealing spies sought after by Doug.
Jonesy loses his confidence after facing karate crook Flung Hi. Mahoney arranges for Jones to train with his old master, Shiro, who also taught Flung Hi.
Zed develops a fear of water while buying a new goldfish bowl for Commandant Lassard. The Professor equips the graduates with new inventions to catch a group of criminal surfers that use hover boards.
Mahoney's new neighbor, Mona, asks him to babysit her niece, Nelly. He calls in reinforcements and they all have their hands full with Nelly, without even realizing that crooks are after the top secret transistors hidden in her rattle.
Mahoney and Jones arrest Mr. Glitch, but can't find any evidence of theft from the Space Lab, because Glitch feeds the stolen microchip to Lassards goldfish, Finnegan. Harris lets Glitch go, Zed and Sweetchuck find out about Finnegan but lose him down the drain, and the underwater chase is on on two fronts.
Kingpin hires Waxen Wayne, alias the Chameleon, to infiltrate the ball at the Governors mansion in honor of the Police Academy. Wayne takes the place of the Governor and orders all the cops suspended.