Plot : A rescue team invades Saddam Hussein's palace to rescue hostages. They are ambushed by Iraqi guards. While a gunfight ensues Saddam (Haleva) is awakened, and with his sleep mask still on shoots blindly around the interior of his palace. The rescue team is captured as Saddam runs out of his palace screaming and shooting wildly into the air and falling into the fountain.
Topper Harley (Sheen) has retired from the Navy and become a Buddhist in a small village. Colonel Walters (Crenna) and Michelle Huddleston (Bakke), CIA, arrive and try to persuade Topper to come out of retirement in order to rescue a rescue party who went in to rescue a rescue party who are now hostages in Iraq.
Topper initially refuses, but when another rescue mission led by Walters goes awry, he agrees and parachutes into an Iraqi jungle with Harbinger (Ferrer), Williams (Colyar) and Rabbinowitz (Stiles), close to the heavily guarded hostage camp. Their contact turns out to be Topper's former love, Ramada (Golino), who guides them to a fishing boat that she prepared for their transportation. She and Topper reminisce, and Ramada explains that she was married before she met Topper, but could not tell him about her husband, Dexter (Atkinson), for complicated reasons. She also informs him that Dexter is one of the hostages.
A confrontation with an Iraqi patrol boat destroys their boat. When United States President Tug Benson (Admiral Benson in the previous film) hears of the apparent failure of another mission, he takes matters into his own hands.
The commandos reach shore safely. Topper grows suspicious of Harbinger since he was not around when the patrol boat showed up. They reach the Iraqi hostage camp, where a gunfight ensues that the Americans win despite overwhelming odds. Topper finds Harbinger hiding out and at first accuses him of being the saboteur; Harbinger reveals that he is giving up fighting but Topper calms him down.
While the squad evacuates the hostages, Topper enters Saddam's seemingly abandoned palace. He runs into Saddam, who pulls out his machine pistol and commands Topper to surrender. Topper disarms Saddam and they engage in a sword fight. President Benson arrives and orders Topper to rescue Dexter while Benson and Saddam pull out lightsabers and continue the duel. Benson defeats Saddam by spraying him with a fire extinguisher, upon which Saddam and his dog solidify, crack and melt, only to combine and reform as Saddam with his dog's head fur, nose and ears.
The squad heads back to the army helicopter, where Ramada discovers that Michelle is the saboteur who imprisoned Dexter and reveals they were roommates at university. After a complicated revelation, Ramada chases Michelle over an assault course similar to American Gladiators, eventually catching her.
Dexter arrives with Topper and insists on taking a picture of Ramada and Topper, claiming "under other circumstances, you'd make a great couple." He backs away too far and topples over a cliff, at which point Topper and Ramada acknowledge that "he really was a wiener". Colonel Walters arrests Michelle as President Benson joins the escapees. Saddam is about to shoot down the chopper when Topper and Ramada get rid of extra weight in the chopper by pushing a piano out of the open door, which crushes Saddam. Topper and Ramada kiss as they ride off into the sunset, although the chopper gets a little scorched from flying through the sun.
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