Ballet is the medium; international intrigue is the message. At the theatre, David, Micky and Peter are hired to perform music for the Druvanian National Ballet using really weird native instruments (a lyre, a lute, and a hornpipe, respectively). Meanwhile, Ballerina Natasha Pavlova bickers with her dancing partner Ivan that she can't stand rehearing 24 hours a day while Ivan checks her shoes in which he slips in a secret microfilm in the toe of her slippers which he informs to the Ballet Master, Nicolai. Soon as they rehearse, Nicolai instructs The Monkees to play and they perform very badly as Natasha bumps into Peter after being twirled around by Ivan. A fed up Natasha storms off but before complimenting Peter's face and then hides in the Monkees' trunk. Ivan blames the mistakes on The Monkees' incompetence and they are fired and kicked out of the theater. The guys leave with their trunk with Natasha still inside. Ivan declares Natasha and the microfilm gone, but Nicolai insists Druvania will get it back at all costs, even at the expense of human life.
Meanwhile, the threesome drag their trunk back to their pad where Natasha pops out and threatens David and Micky at gunpoint, while she falls in love with Peter because of his beautiful face. Micky in a moving speech manages to convince Natasha to hand over the gun and then holds the gun on Natasha and Peter doing a gangster impersonation. Soon Natasha starts bawling since this was her final chance to stay in America but she'll be forced to return to Druvania. Peter offers to protect her but David warns that since she's a big star, it could lead to an international incident, possibly war, and the destruction of the world, which Peter willingly takes responsibility! Then Micky and David head to The Druvanian Embassy where they speak to Nyetovich, the Ambassador about a ballerina. However, the Ambassador denies of hearing of Natasha and has them thrown out---and alerts Ivan by phone. Back at the pad, Natasha is chasing Peter all over the place as Peter tries to fend off her maniacal advances, but is interrupted by Ivan and Nicolai knocking on the door. Peter sends Natasha to hide in the trunk and opens the door as the two villains slam into him in an attempt to break the door down. Peter his knocked out from hitting his head; with no sign of Natasha, the two take unconscious Peter instead back to the thater for questioning.
Natasha warns to David and Micky that Peter will be tortured and forced to talk. Micky replies, "Talk?! Never. They can torture him, beat him, drug him; he'll never talk! There's only one torture he can't withstand, oh, I pray they don't use that…The Direct Question!" She manages to persuade them to overcome the risks of going on home territory and go to Peter's rescue. There at the theater, David and Micky, in the guise of detectives, declare to Nyetovich that they are from The BVD and investigating the disappearance of Natasha Pavlova, only to find that Nyetovich's assignment coincides with theirs. Meanwhile, in a room Ivan and Nicolai are interrogating Peter who claims to know nothing; Nicolai suggests they brainwash Peter, who advises that they use a good detergent ("New Reebersober's Brain Detergent doesn't fade, bleach, or shrink your brains!"); later, disguised as Cossacks, Micky and David, approach a group of ballet dancers rehearsing about Peter's whereabouts who's probably tied up blind folded and facing a firing squad. The dancer and asks outside where a bound, blindfolded guy who's actually facing a fire squad if he's Peter Tork just before his execution! To evade an approaching Ivan, Micky and David get in line and are involved in a wild Russian dancing rehearsal, pretending to be replacements. However, Ivan orders them to do Russian dancing on the spot to prove their dancers to which Micky and David give a lousy Russian dance as they dance away, barely eluding Ivan. Recognizing who they really are, he sends an ultimatum saying Peter Tork will die unless Natasha is returned for the night's premiere, sending Natasha, Micky and David to the rescue.
Natasha returns to the theatre insisting to Ivan that they let Peter go which they'll do after the tour ends (in 6 months). Later, Micky puts a glass to the wall to listen in the next room where the villains are (he saw it in a movie once) only to hear an operator first! The three discover that Nyetovich has recovered the film and is preparing to do away with Peter at the end of Natasha's solo. Ivan will leap into the air and a cymbal crash will be heard as soon as he lands, at which time Peter will be shot! Natasha prepares to don her chicken costume and mask for her "Dance of The Chicken" when she suddenly sprains her ankle, forcing Micky to take her place. Soon Micky is dragged off by Ivan as Davy and Natasha hide. Soon, as the music plays, three different romps commence: David jumps into the orchestra pit and does all he can to prevent the cymbalist from crashing his cymbals; Peter escapes Nicolai and takes on all comers, including Nyetovich, and a girl wrapped in a bathtowel, with swords, chalk, and a butterfly net; and Micky gives a hilarious performance onstage with Ivan, whom he prevents from taking that final leap into the air. The romps end with Nyetovich tied up and Ivan and Nicolai knocked unconscious and a frustrated conductor who whips off his white wig!
Back at the pad, Davy informs Natasha that the government has decided to let her stay and Peter is thrilled since they can continue see more of each other. However, Natasha decides that they're too different, since there's more to love than just a beautiful face and true love requires mutual understanding and a common background. She tells him that she's found a new love and when she introduces her new beau, a Russian named Alexei, they discover that he looks exactly like Peter! Michael joins the trio as they end the show with a rendition of "She Hangs Out".