Analysing the disc that was left in Terry's father's possession, Bruce is outraged that Derek Powers is using his company to make nerve gas. However, instead of taking up the mantle of Batman again, he insists that Terry take the evidence to Commissioner Barbara Gordon. Though Terry is disappointed, he reluctantly agrees.
On route, Terry is intercepted by Powers and his assistant Mr. Fixx. He loses the disc, but manages to escape. Powers is satisfied and returns to his office to meet with Kasnia's Minister of Commerce, to whom Powers plans on selling the nerve gas. Watching the minister's arrival on TV, Bruce is disgusted and shuts it off. He now hears a loud barking from outside. It's his dog, Ace, tied up at the front gate. Realizing something is wrong, he checks the Batcave and finds the Batsuit missing.
Terry is flying (though clumsily) over the city, but quickly gets the hang of it. He spies on Derek's Powers meeting with the Kasnian minister. Powers is showing the minister what his nerve gas can do. Impressed, he asks that the gas be shipped immediately. Terry manages to record part of the meeting, including finding out that it was actually Mr. Fixx who killed his dad.
Suddenly, Terry is discovered by Wayne-Powers security and he drops off the building to make his escape. The guards sound the alarm. Pursued by the guards, he runs into a warehouse. Inside, Bruce calls Terry through the suit's radio, demanding that he return the suit. Terry, a little preoccupied at the moment, refuses. Bruce warns him there will be consequences.
Terry is busying himself with beating up the guards, when Bruce hits the suit's fail-safe mechanism that paralyses him. Unable to move, Terry is being beaten to death. He begs Bruce to release him, and eventually Bruce relents. He demands the suit be returned and guides Terry to a secret passage so he can escape the guards.
Though Bruce can call the police, Terry insists that he can stop the transport of the nerve gas, Terry appeals to Bruce's reason's for being Batman. Bruce tells him the hover transports are in the north-east sector and wishes him good luck.
Terry decides on a straight-in approach to arrest Powers and Fixx, but is met with heavy resistance. Powers orders Fixx to get the transport off the ground, while he deals with the intruder. Terry throws a container of the nerve gas at Powers. Powers panics and shoots the container exposing him to the nerve gas.
Terry flies off to intercept the transport and confront Fixx. Rushing to the cockpit controls, he finds it empty. He searches around only to be punched in the face with a form of electrified brass-knuckles. They struggle for a while, until Terry manages to punch Fixx back into the controls. The brass-knuckles short circuit the controls, causing the transport crash into the river. Terry escapes the transport before it completely goes under. Presumably, Fixx drowns.
The next day, Terry receives a special visitor at his mom's home. It's Bruce Wayne who's offering Terry a nighttime job. Terry accepts and they shake hands with Bruce adding, "Welcome to my world."
Meanwhile, Derek Powers has undergone intensive radiation therapy to rid himself of the nerve gas. However, the combination of the nerve gas and treatment has mutated his cells, causing his flesh to glow in the dark. He laughs maniacally at his new appearance.