Sequel to The Mouse that Roared; The Tiny Country of Grand Fenwick has a hot water problem in the castle. To get the money necessary to put in a new set of plumbing, they request foreign aid from the U.S. for Space Research. The Russians then send aid as well to show that they too are for the internationalization of space. While the grand Duke is dreaming of hot baths, their one scientist is slapping together a rocket. The U.S. and Soviets get wind of the impending launch and try and beat them to the moon.

A champion jockey is banned from racing so spends his time helping a young lad to become the next champion.

Stanley is a short order cook, infatuated with Margaret, the statuesque waitress who works at Wimpy Bar with him. Despondent, he prepares to end it all when he meets George Spiggott AKA the Devil. Selling his soul for 7 wishes, Stanley tries to make Margaret his own first as an intellectual, then as a rock star, then as a wealthy industrialist. As each fails, he becomes more aware of how empty his life had been and how much more he has to live for. He also meets the seven deadly sins who try and advise him.

As a child, Princess Dala is given, by her father, the largest diamond in the world, in which if you stare into it can be seen a "Pink Panther" hence the name. However, now as a young woman, rebels in her home country have seized power and are demanding the return of the jewel. Dala relaxes on holiday in an exclusive skiing resort but noted British playboy, Sir Charles Lytton is in town. He is secretly "The Phantom" - infamous jewel thief who has eyes on the Pink Panther. Charles's playboy nephew George follows to the resort in an attempt to steal it and blame it on "The Phantom", not knowing that it's his uncle. On the Phantom's trail is Inspector Jacques Clouseau, from France, and his wife who, unknowingly to Jacques, is the lover of Charles and helper in the Phantom's crime. Jacques tries to stop the attempts but he is so clueless that when several attempts are made at a fantasy-dress party...