Jim gets into a parked car to pick up his briefing, where he is informed that Colonel Marcus von Frank is leading a neo-Nazi organization in Europe. Industrialist Otto Kelmann plans to turn over his holdings to von Frank to finance his rise to power.
Jim assembles the team of Rollin, Cinnamon, and Willy and in the briefing they go over Kelmann's background as a munitions maker. Kelmann's wife died in 1932, murdered by Adolph Hitler. Kelmann covered it up and they plan to bring the past back to life. Cinnamon goes over the photographic gear and Willy has the uniforms and projector set up. Rollin has some actor friends ready to recreate Kelmann's study once Cinnamon gets the information. The IMF psychiatrists have identified von Frank as a manic-depressive and Jim plans to gain his confidence pretending to be a member of an American Nazi organization.
Kelmann and von Frank discuss their plans to gain power and Kelmann reassures von Frank that he has his lawyer making the arrangements to transfer his industries to him. von Frank tells his aide Karl to keep an eye on Kelmann until he signs the papers. Jim is at von Frank's office and asks for von Frank to support him as the new head of the various American Nazi organizations. von Frank tests Jim's determination by challenging him to a sword duel and Jim has to agree. They take minimal safety precautions and glasses of brandy are placed behind Jim's feet to ensure he doesn't back up. They fight and von Frank is satisfied when Jim holds his own. Jim asks to work with von Frank while he's in Europe.
Kelmann arrives at the park for his daily visit where Cinnamon is there as a photographer. She takes over his bench and asks him to move so she can get the perfect light. Kelmann notices she has an old-fashioned hairstyle similar to his wife's. Cinnamon "accidentally" rips her skirt and Kelmann offers to driver her home. As Rollin and Willy work on the duplicate of Kelmann's World War II study, Kelmann notes that his wife was also a photographer. Cinnamon apologizes to Kelmann then gets a call and she is clearly frightened when she talks to the person at the other end. Kelmann graciously offers to take her to his house to protect her and offers her a job, and she gratefully accepts. Later she explains that she met a student, one who spoke out against the Nazis and is now in danger.
Karl calls von Frank to report about Kelmann's meeting with Cinnamon and the fact Kelmann has asked her to stay over. von Frank prepares to visit in the morning. Later that night, Cinnamon sneaks down to the study to take pictures while Rollin studies footage of Adolph Hitler. Cinnamon then goes through Kelmann's belongings and finds a photo of the study from 1932. Karl catches her and brings down Kelmann, and Cinnamon manages to improvise an explanation.
The next morning Jim and von Frank arrive at Kelmann's home and Karl lets von Frank know about Cinnamon. She takes pictures of von Frank and he demands the camera, but Kelmann and Jim manages to calm him down and Jim takes the camera. He gets a few minutes with her alone and slips her a knockout injection and the antidote, and in return she gives Jim some fake film to show to von Frank, along with the photos. As they leave, Jim warns von Frank about Cinnamon, saying she's his enemy. Jim gets the photos to Rollin and Willy, who finish their work on the mock study. Cinnamon drugs Kelmann while von Frank finds out Cinnamon's story is fake and believes Kelmann is lying to him about her.
Kelmann passes out and Cinnamon signals Rollin and Willy, who come in. They knock out Karl and rig Kelmann's study, then revive him in a drugged semi-awake status. Jim and von Frank search Cinnamon's apartment while Kelmann partially wakes up to find himself seemingly in 1932 with Cinnamon as his wife. Rollin and Willy come in as Adolph Hitler and a guard, and accuse Cinnamon of working against the Nazis as a spy. They play out the murder of Kelmann's wife with Rollin/Hitler shooting Cinnamon. Rollin leaves a loaded gun with Kelmann and leave with the 1932 furniture. Jim finds a fake air ticket "proving" that Cinnamon is lying, and von Frank goes to Kelmann's to confront her.
Cinnamon wakes up Kelmann and then von Frank comes in to accuse her of working against the Neo-Nazis. She says the same words that she did in the (fake) 1932 and Jim hands von Frank a gun that is secretly filled with blanks. When von Frank kills her, the confused Kelmann shoots and kills him to make up for how he failed to save his wife in the past. A distressed Kelmann goes to call the police and turn himself in, then goes upstairs to wait for them.