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The story begins with The Joker in prison pitching in a ballgame. After a few pitches, the catcher switches the ball with one he has stashed in his padding and tells The Joker "This is the one." As the batter hits the ball, a smoke cloud appears and before anyone knowns what's happened, The Joker escapes using a spring-loaded device that propells him over the prison wall. The only thing The Joker has left behind is a statue of his face and bust that was concealed under the spring contraption.

Batman and Robin go to the museum to check everything out--they were suspicious the Joker would strike there in revenge because he had not been entered into The Comedy Hall of Fame. When arriving, they find out The Joker's statue is indeed there and decid he must be somewhere else. After everything's locked up they believe that no one can break in. While going back in, they find The Joker trying to steal the valuable jewels inside. While the fight ensues, Batman is knocked out from a falling antique sword that is hanging on the wall. As they are carrying Robin and him away, he uses a gas pellet from his utility belt. The Joker escapes out a trap door while his henchmen are gathered up. After being defeated once again by Batman's utility belt, a fed-up Joker decides to make his own.

While in his hideout, The Joker comes up with an idea to steal the S.S. Gotham from his henchwoman. He plans to eliminate Batman so he can take the ship. Bruce Wayne and Dick Grayson arrive at the commissioners office for talk on the S.S. Gotham. While there, a clown doll is thrown through the window. Bruce Wayne asks to take it for a souvenir and back at the Batcave Batman and Robin try to figure out what The Joker is up to. They come up with the idea that The Joker will be at The Gotham City Opera Company, where Pagliacci is being performed.

While at the opera, Batman and Robin are caught when The Joker throws sneezing powder in their face and his henchmen grab our heroes. A horrified audience then watches The Joker make a move to unmask Batman and Robin...