Inspector Clouseau disappears, and the Surete wants the world's second best detective to look for him. However, Clouseau's enemy, Dreyfus, rigs the Surete's computer to select, instead, the world's WORST detective, NYPD Sgt. Clifton Sleigh. Sleigh obtusely bungles his way past assassins and corrupt officials as though he were Clouseau's American cousin.

When rich M. Ballon's spanish driver is found shot dead, Inspector Jacques Clouseau is the first official on the scene. All evidence suggests Maria Gambrelli, the maid, to be the murderer. But Clouseau, being attracted to the beautiful girl, is convinced that she is hiding something. So, he has her released from jail and tries to follow her secretly. Things do not work out the way the inspector wanted and people keep being murdered, and each time innocent Maria seems to be the killer. But with someone important wanting Clouseau and nobody else to cover this case, his tolerance-challenged boss Charles Dreyfuss is close to losing his mind when casualties keep turning up. And Clouseau keeps on causing trouble without knowing it...

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...

After having been rewarded for solving the mystery of the Pink Panther Diamond, inspector Jacques Clouseau has been assigned to minor tasks by his boss inspector Dreyfus so as not to have him in his way anymore. Unfortunately, the famous diamond has once again been stolen as have many other artifacts in a series of burglaries around the world. His past success will enable inspector Clouseau to be part of the dream team comprised of the greatest detectives of the affected countries, where he will be able to display his numerous talents across the world.

The feature adaptation of Roger Lewis' book about the actor best remembered as Inspector Clouseau in the Pink Panther movies.