A couple of scientist are examining a volcano in Hawaii and they are approached by a woman and a big bald headed man. The woman takes off her sunglasses and reveals that she has snakes for hair and she turns the men into stone statues. She plans to do more scientist this way and sell them to the highest bidder and become rich.
The gang is attending a luau and the volcano begins to erupt. Sherman panics and runs into a statue of Madula and he and Baby Fangs see the earrings that resemble the moon and they change into Fangface and Fangpuss and chase Puggsy. They catch him, and he riminds them that he is their buddy and they let go. The natives tell the gang about the curse and Queen Madula. It seems that the amulet that was on the statue has been stolen and it is told that Madula is the decendant of Medusa, and with the amulet, she can turn people into stone. The gang decides to go to the volcano and investigate.
As they are rowing down the river, Fangface and Fangpuss start rowing too hard and speed the boat up and they hit a rock, throwing Fangface, Puggsy and Fangpuss onto the shore. They find the decendant of Queen Madula and she attempts to turn them into stone, but they dive into a bush and it is turned into stone trapping them. She and her assistant then leave to go to the hotel and turn more scientists into stone.
The evil woman makes it to the room where the scientists are and she turns them into stone. She tells her henchman to put them in a cart and cover them to take them out of the hotel. At the same time, Fangface (dressed up like a cleaning woman) is pushing a cloth covered cart that everyone else is hiding in to escape detection by the hotel doorman. Fangface runs into the evil woman's cart and she starts to chase him and the others. They escape being turned into stone and she takes her cart and leaves the hotel.
The evil woman returns to her secret cave near the volcano with the scientist statues. The gang is close behind and they follow her in. They hear her tell her henchman to get her hair stylists and bring them to her. She wants to get ready to sell the statues. Puggsy and Fangface arrive dressed as har stylists. Biff and Kim are discovered by the henchman and she tries to turn them into stone, but Fangpuss grabs the henchman's garmet and he drops them. She then turns to try and turn Fangface into a stone statue and Puggsy tosses Fangpuss with a mirror to Fangpuss and they reflect her gaze back at herself and she turns to stone.
The police arrive and ask how can they turn everyone back to normal and Kim takes the amulet off of the evil woman and everyone returns to normal and Kim gives the amulet back to the villagers.