The Penguin is watching a movie about a team of thieves working together on a heist, and gets the idea to put together his own team of villains. Bane is robbing a bank when he receives an invitation to join "Team Penguin." Batgirl and Batman arrive to fight him although she's surprised to find that Batman now has an "official partner to the Dark Knight" – Robin. Robin and Batgirl are soon squabbling and Batman takes down Bane himself.
The Penguin watches on television as Bane is taken away, as Firefly, Ragdoll, and Killer Croc, look on as his "recruits." They're interrupted when Killer Moth shows up, despite the fact he didn't get an invitation. Team Penguin is less then impressed by their new member, but need someone to make coffee so keep him on
At the Batcave, Robin is undergoing a training exercise while Bruce researches Penguin's new gang. Elsewhere the Penguin takes his team on a theft requiring precision timing to steal a canister of chemicals. Batman and Robin arrive as do Penguin's team and Batgirl, and a major fight breaks out. Robin and Batgirl fail to coordinate and Batman is forced to rescue them, ending up trapped himself under some falling barrels. Firefly sets a fire behind them, preparing to roast the trapped heroes.
Batman uses some rocket charges to free himself and then gets his partners clear as the place goes up in a major explosion. Team Penguin figures they survived but are confident they can beat them again. Robin and Batgirl are fighting while Batman figures Penguin stole an unstable chemical. Batman takes them all to the Batcave and reveals his secret identity to Batgirl, and reveals he knows who she is as well.
The Penguin leads his team against a millionaire computer mogul to get a ruby-encrusted penguin in a vault which he needs the chemical to burn through. Killer Moth is moving the chemical as Batman determines that the chemical is a universal solvent at room temperature. Batgirl and Robin participate in one of Batman's training exercises while arguing back and forth, but they're interrupted by news of the theft.
Killer Moth's truck shows up at the Team's location, but the chemicals have transformed Killer Moth into a giant cocoon. The rest of the team have had it with Penguin, but as they prepare to leave Killer Moth emerges from his cocoon… transformed into a giant moth-creature. The new impressive Killer Moth demands respect… but insists that Penguin is still leader and forces the others to stay on. Killer Moth can fly and extrudes the solvent, but before they can put their plan into action, Batman's team arrives. The Penguin sends his team against them while Penguin abandons his partners and has Killer Croc take him to open the vault.
The three heroes manage to take out their respective opponents while the Penguin and Killer Moth enter the vault and get the jeweled penguin. Batman brings them down as they escape and Robin and Batgirl bring down Killer Moth… right on top of the Penguin. Batgirl and Robin resolve their differences… sort of.