In Scotland, a policeman's car is taken by a mysterious strange – Wolf, wielding a glowing axe. In Manhattan two weeks later, a thug, Vinnie has a special custom-tailored weapon built to get revenge on the Gargoyles, as he's had several encounters with them in the past. A glowing speaking blob of energy contacts Wolf, who is roaming the back alleys, and draws him to Hudson and Goliath. The two Gargoyles manage to hold their own until Vinnie intervenes (unsuccessfully and unnoticed). Hudson and Goliath manage to knock him out, but then the energy from the axe materializes as... Hakon, who claims Wolf is from his bloodline. Hakon takes over Wolf's body and begins the battle anew.
When Goliath and Hudson try to retreat, Hakon pursues while Vinnie tries to get a clear shot with his super-weapon. Hakon is able to render himself immaterial and invisible, and convinces Hudson that Goliath is Wolf. Goliath manages to get through to Hudson while Wolf/Hakon escapes.
After waking up, Wolf is unhappy with the arrangement and threatens to destroy the axe – Hakon's link to the earth. Goliath recognizes the power of Hakon and track him to Wolf's lair, where Wolf ambushes them. He knocks out Hudson and fights with Goliath. Hudson arrives in time to fight against Hakon animating the axe. Hudson lures Hakon and the axe into a car compactor while Goliath taunts Hakon into burying himself under a pile of cars, knocking himself out.
Vinnie finally shows up to shoot the puzzled gargoyles, only to hit Goliath with... a banana cream pie. His revenge complete, Vinnie walks off, leaving the duo more confused then ever.