Tired of playing second banana to Bugs Bunny, Daffy Duck demands his own cartoon from Warner Bros., but is promptly fired by the "Vice-President of Comedy", Kate Houghton. Security guard and aspiring stuntman, DJ Drake is asked to escort Daffy off the studio lot, but the ensuing chase leads to the Batmobile demolishing the studio water tower, causing DJ to also get fired in the process. He returns home with Daffy hitching a ride, where he receives a message from his father, action film star, Damian Drake, who is actually a secret agent. Damian instructs his son to travel to Las Vegas, find his associate, Dusty Tails, and find a mystical diamond called the "blue monkey" diamond, before he is shortly thereafter captured by the Acme Corporation, led by the childish Mr. Chairman. DJ and Daffy head for Vegas. Meanwhile, Bugs' routines fall apart without Daffy, so Kate Houghton is forced to find and rehire Daffy or face being terminated herself. Bugs informs Kate of the situation, so they head to DJ's home where they find Damian's spy car, and use it pursue DJ and Daffy.
