In a European city divided east/west, on the Eastern side Rollin and Jim wait outside a government building disguised as officers while Cinnamon signs in disguised in as a major. She breaks into an upstairs office and opens a window after bypassing the light beams. She then breaks into a vault and takes photos of top secret papers, while a pigeon disturbs the light beams on the windowsill. She tosses the film to Jim and Rollin who make their escape after knocking out a guard. The guards capture Cinnamon.
Back at their headquarters, Jim is guilt-stricken that Cinnamon was captured and snaps at his teammates. Cinnamon is taken to Colonel Josef Strom for interrogation once they determine they can't identify her.
The IMF team comes up with a new plan: since they can't free Cinnamon, they're going to give the government Rudolf Kurtz, a spy held by the West. They have an inflatable Kurtz dummy and a rigged wheelchair. They plan to break Kurtz out of jail from the Western authorities, then get the top-secret information he hasn't given up. The plan will put them at risk from the people on their own sides.
After a sleepless night, Cinnamon is brought before Strom and seated in a chair that monitors her physiological responses. The team mounts a tape recorder atop a car and drives out, while Strom interrogates Cinnamon then offers her a bribe. When she refuses, she proves immune to threats of death or disfigurement. When he hints at solitary confinement in a small cell, the men monitoring Cinnamon determine she is claustrophobic.
The team go into the military base where Kurtz is being held, recording the voices of the guards. Jim then visits Strom as an attorney and negotiates for Cinnamon's release. As he bargains with Strom, Jim secretly takes photos of the office. He then offers Kurtz in exchange for Cinnamon and Strom tentatively agrees.
Strom's interrogator Dr. Emil Gorin administers drugs to Cinnamon to heighten her fear, while a wheelchair-bound Rollin visits Kurtz as the new counsul-general. Rollin gives the proper code words to identify him as Kurtz's superior, then takes the inflatable Kurtz dummy out of a compartment in the wheelchair while keeping up a conversation for the guards who have the room bugged. Kurtz then gets into the wheelchair's hidden compartment and Rollin leaves with the dummy taking Kurtz's place.
A desperate Cinnamon tries to pry her way out of the small cell and manages to get into a ventilator shaft. However panels close her off on either side, leaving her in an even smaller component. The stress drives her first into a panic and then shocked unconsciousness. Gorin prepares to revive her, knowing that now they have the leverage to crack her.
The team takes Kurtz to their warehouse base and reveals they plan to smuggle him across the border in a crate. Willy puts Kurtz into the crate and then they put it on a hydraulic platform and simulate transporting him across the border by truck, using the recording they made earlier.
Confined in a cell and drugged, Cinnamon begs for help and Strom pipes her voice in demanding to know who she is. Cinnamon barely holds onto her sanity and refuses to reveal her own identity, but she reveals Jim's first name and hears Strom's voice as Jim's. Strom tries to find out who she works for and she almost breaks. Gorin stops the interrogation, warning that she's on the edge but will talk when she comes out of it.
The team finishes up Kurtz's fake trip then take him to an upstairs room which they've made into an exact replica of Strom's office. Jim is there as the Colonel who has replaced the "traitorous" Strom. Jim demands that Kurtz give him his report but Kurtz refuses. Jim reveals Strom committed suicide after being declared a traitor. Rollin comes in to confirm Jim's story and assert that Strom betrayed Kurtz. Kurtz asks to see the file on Strom's trial.
With time running out, Cinnamon remains unconscious and Kurtz remains skeptical. Jim threatens to put him on trial as well if he doesn't make his report and the agent finally relents and tapes his information. With time running out for Strom before he makes the exchange, he tells Gorin to use a different drug that might kill Cinnamon.
Kurtz finishes his briefing at which point the team reveals the entire deception. Jim points out that they don't plan to tell Kurtz's superiors he gave up the information if he doesn't. Jim then goes to Strom and demands to make the exchange in one hour, each halfway to the other. Strom agrees and calls off the newest round of injections.
The IMF meet at the agreed-upon spot while Strom brings Cinnamon to the other side of the gate. Barney gives Jim a coat for Cinnamon to wear and Jim wears one of his own. Jim then takes Kurtz halfway across and meets Strom with Cinnamon. However, the Western authorities arrive and Rollin gives them half of the info they want. They'll give them the other half once they have Cinnamon. The Western authorities agree and Jim finishes the exchange. As soon as he has Cinnamon, Strom guns down Jim and Cinnamon and leaves, satisfied. Once Strom is gone, Jim and Cinnamon get up: the coats are bulletproof. The team embraces.