Pake has left a good paying job working in the oil fields of Texas in order to give the music business a try. Eventually he finds himself alone and with no money in a hotel room in Los Angeles. He sets up a meeting with his old girlfriend Kay. When he meets her, she is with her fiancee. He is a Greek immigrant who desperately needs to marry Kay in order to become a permanent resident in this country. However his plans are in trouble because of Pake trying to convince Kay to go back to Texas with him and get married.
When secretive new neighbors move in next door, suburbanite Ray Peterson and his friends let their paranoia get the best of them as they start to suspect the newcomers of evildoings and commence an investigation.
In the opening chase, Martin Riggs and Roger Murtaugh stumble across a trunk full of Krugerrands. They follow the trail to a South African diplomat who's using his immunity to conceal a smuggling operation.