In the Burma Highlands jungle, St. John, along with several others, are held prisoner at Colonel Bouchard's prison camp. At the airfield, String and Dom's niece Jo test a piece of equipment in the JetRanger. After landing and going inside the hangar, a man places an envelope addressed to String inside the JetRanger, which Jo later finds.
String goes to the Company to have a cassette tape inside the envelope analyzed. Jason Locke, Archangel's replacement, walks in and takes over. Archangel has been reassigned to the Far East, and displeased with the change, Hawke reluctantly accepts Jason's help.
Out in the jungle, St. John is brought to Bouchard's quarters and beaten when he doesn't want to talk about Airwolf. After he's thrown back into his cell, his cellmate, Ackroyd, tells him the envelope was delivered, but it's useless without proof it actually came from him. So, St. John gives him a ring to send out.
At the hangar, Dom is about to take off in a chopper, and as String runs over to talk to him, the chopper explodes, killing Dom and seriously injuring String. Jo goes to see String in the hospital, where she is approached by Jasonwanting to know about Airwolf's location. She roadblocks the conversation and Jason lets her mourn for the moment.
Jason finds Major Mike Rivers in the woods and assigns him to the Airwolf file. With wit and lighthearted nature, he accepts. In the jungle, another cellmate talks to Hawke and informs him that Ackroyd has been giving Bouchard his messages, which he's been using to lure String with Airwolf. He intends to use St. John as bait. At the Company, Jason briefs Mike on Airwolf and starts him on locating it.
At the hospital, a weakened String begs Jo to use Airwolf to find St. John. Jason is back at the Company trying to access St. John's file, but cannot. So he does the next best thing, which is pay a visit to a former Company agent who was involved in St. John's last operation, named Montrose. Montrose tells Jason about a Company operation that ended in disaster – him shot in the spine and paralyzed, and St. John supposedly killed. The operation was contracted by an independent British unit for support, led by Bouchard. Its failure was the result of Bouchard's personal agendas.
St. John confronts Ackroyd about stabbing him in the back, and after he pulls a knife, St. John forces it back into him. After an escape attempt into the woods, he's surprised by Bouchard's soldier dummies and recaptured. Jason visits Jo at the hangar to make another attempt at probing her about Airwolf, but she smokescreens him. After he leaves, Jo picks up an envelope left at the door, which contains St. John's ring.
Not knowing that String is injured, Bouchard taunts St. John with his plan to kill String when he arrives to attempt a rescue in Airwolf. St. John sucker punches him as a distraction while he swipes a knife. Mike walks into Jason's office to inform him he's located Airwolf and they go after it. On the way, Airwolf flies overhead. After marveling over the chopper, they follow it to the lair, which is now decked out in an assortment of computer equipment. Jason orders the pilot out of the chopper, which turns out to be Jo. After brief resistance between them over Airwolf, they quickly join forces to go find St. John by using coordinates etched into the ring he sent out.
When they arrive in the jungle, they soon discover that Bouchard's guards are actually dummies and that it's a trap. They go ahead and play into it. Bouchard releases poisonous gas as St. John escapes from his cell. Mike begins lighting up the place with missile fire, until one of Bouchard's men comes after them in a chopper shooting. Mike does a 360 degree loop and gets behind him, striking the chopper with a missile. On the ground, St. John and Bouchard fight. Bouchard pulls a knife, and the fight ends when they both fall to the floor, with the knife killing Bouchard. Airwolf returns to pick St. John up.
String lies in his hospital bed, and is ecstatic to see St. John walk through the door. After their heartfelt reunion, Jason later comes to the room to find it empty. At the lair, Jason, Mike and Jo wait as St. John returns in Airwolf. Jason proposes the idea that they all work together using Airwolf while working for the Company. St. John accepts, thus rounding out the new Airwolf crew.