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Tired of playing second fiddle to Bugs Bunny, Daffy Duck decides to leave the studio, which humor-impaired VP of Comedy, Kate Houghton (Jenna Elfman), is more than happy to support, instructing WB security guard/aspiring stuntman DJ Drake (Brendan Fraser) to capture and "escort" Daffy off the studio lot. Suddenly a sidekick without a hero, the duck decides to ally himself with DJ, whether he likes it or not. Soon, though, DJ discovers that his famous movie star father, Damian Drake (Timothy Dalton), known for playing suave international spies onscreen, is actually a suave international spy in real life and has been kidnapped by the nefarious Mr. Chairman (Steve Martin) of the equally nefarious Acme Corporation. It seems that Damian knows the whereabouts of the mysterious and powerful Blue Monkey Diamond, and the Chairman will do anything to get his hands on it.
With Daffy in tow, DJ hits the road in a desperate attempt to outrace the evil Acme stooges to the diamond and save the world from their evil clutches. Unbeknownst to the two neo-spies, they're also being followed by VP Kate and Bugs after the studio brass decides the rabbit needs a comic foil after all. Their chase sends the foursome around the globe, meeting up various undercover operatives along the way, from Dusty Tails (Heather Locklear), a showgirl at Yosemite Sam's glitzy Las Vegas casino, to Mother (Joan Cusack), the stern but loving caretaker of the various otherworldly creatures housed at Area 52 (a location so extraordinarily top secret that Area 51 was invented just to hide it). Then it's off to the lights of Paris and the treasures of the Louvre, and finally into the deepest jungles of Africa, where they must beat the dastardly Chairman to the diamond.