In Paris, Inspector Philippe Jaggerman and a Commandant watch the execution of a terrorist by firing squad, a terrorist apprehended by Jaggerman. Upon leaving, an agent brings them a burnt flyer with Jaggerman's daughter's photo, found in the quarters of the executed terrorist's friends. Jaggerman now worries about his estranged daughter's safety.
At the lair, Jason and St. John are reviewing the case. Jaggerman's daughter, Anna LeBlanc, performs her mime routine at a theater, with Jo and Mike working undercover as backstage crew behind the curtain. Her boss, Anton, shows great annoyance and skepticism with the need for their protection, as he has to hide their operation from the rest of his troupe.
Later, Mike turns on his charm, and as he and Anna are attracted to each other, they become close. Peter Druker, brother of the executed terrorist, arrives in the U.S. and joins his cohort to exact their revenge. Back in Paris, Jaggerman is told his daughter has been located by the Company, but she refuses to return, so he goes to the U.S. At the theater, Anna is disappointed when Mike tells her he's on assignment to protect her. She doesn't want anything to do with her father, and she rejects a necklace that Mike tried to give her, which was to be used as a tracking device.
Jaggerman arrives at the airport and is picked up by Jason and St. John; Druker and his friends tail them in a taxi. A still skeptical Anton dismisses Anna from rehearsal for the night and she leaves with Jo and Jean, a deaf child juggler. Once in the alley, a truck tries to run them down, and Mike comes to their aid. Druker set up the ploy to blow Jo and Mike's cover, and was watching from the taxi.
Jaggerman and Anna are both brought to Santini Air, where they have a tense reunion. Anna fails to understand that her life is in danger from terrorists trying to get back at her father. She explains why it's important to perform with the mime troupe, and invites her father to watch her last performance. While Tourand, the troupe's magician, bonds with Jean at the theater, Druker calls him to get an update on Anna's whereabouts. He's holding Tourand's sister hostage to coerce him to spy on Anna.
Jason flies Airwolf to the city to meet St. John, and on the way, gets an update on the terrorist group's next probable hits – an upcoming NATO conference and Company Headquarters. At the theater, the troupe rehearses its final routine, with Jason posted in the alley. Anna finally takes Mike's necklace after they make up. During the rehearsal, Druker and his men hit the place, and Tourand is killed, leaving Anton and Jean devastated and confused. Anna and Jaggerman are kidnapped.
Jason and St. John lift off from the theater's roof in Airwolf, while a frantic Mike and Jo tail Druker on the ground. At the theater, Jean finds a note from Tourand and hands it to Anton, and Anton finally realizes that Anna's being in danger is real. Anna fidgets with her necklace and Druker snatches and destroys it when he sees that it was a tracking device. The signal disappears off of Airwolf's monitors, but they soon pick up heat sources in a nearby warehouse.
Druker has rigged a pressure sensitive bomb that will detonate if Jaggerman drops a drum that will pull Anna's weight off the triggering mechanism. In the event that Jaggerman doesn't drop the drum, the bomb is still timed to go off. Jaggerman voices his regrets to his daughter once they are alone and she forgives him. Mike and Jo find them and weigh down the bomb until they get Jaggerman and Anna out of the warehouse. The time expires and the warehouse goes up. Jason and St. John have lost Druker, but know what his next move will be, so they return to the lair.
The next morning, they take off in Airwolf , and find that Druker is going to hit the NATO Conference. As they approach, two Huey choppers hover in. They fire at Airwolf and narrowly miss. They use chain guns on one of the choppers and it loses control and crashes behind a mountain. Druker's chopper heads out over the ocean. They refuse to land their chopper, and St. John lowers his visor and fires a missile and destroys it.
Later at the theater, everyone toasts to health and happiness, and Mike and Anna bid each other farewell. She offers to take him to a hamburger joint in Paris, and Jason assures her that Mike will make it, granted, when he's able to give him time off.