On the outskirts of Riverton, the "Safest City in America," a pensive Inspector Gadget (FRENCH STEWART) sits in his Gadgetmobile, along with his canine companion, Brain. Gadget is back on the job, on stakeout, but he is concerned that everything is too quiet in Riverton. He has a very simple, rational answer for this: "It�s always quietest just before criminals strike. Evil must be afoot." In a moment of overzealous crime fighting, Gadget arrests an elderly woman for reckless driving, but not without incident. In his effort to make the arrest, Gadget�s many crime-fighting "accessories" go wildly awry. It�s time to report back to headquarters for a checkup. Baxter (BRUCE SPENCE), the "Q" of the Police Department, delivers the prognosis -- as Gadget is a prototype, he�s bound to have some glitches. The remedy is close at hand. But before Baxter can tell Gadget about his new top-secret device, Gadget is confronted by a furious Chief Quimby (MARK MITCHELL). It turns out that the little old lady arrested earlier for reckless driving is Quimby�s mother! Gadget is put on notice - any more mistakes and he is on probation.

Meanwhile, in the dead of night in a raging storm, Gadget�s arch enemy and nemesis, Claw (TONY MARTIN), has made a daring escape from Riverton Prison. Now evil really is afoot! Chief Quimby offers Inspector Gadget one last chance to redeem himself by capturing Claw and returning him to prison. And so the chase begins!

Claw, surrounded by his evil henchmen, is holed up in an abandoned bowling equipment factory where he begins plotting the crime of the century to get revenge on Inspector Gadget. �When Claw hears a news report announcing the Federal Reserve Bank has a deposit of over $5 trillion in pure gold bullion housed in an impregnable fortress-like building in Riverton, he sets his plan in motion. He has 10 days in which to build the ultimate super weapon and strike.

Not one to miss a political point-scoring opportunity. the Mayor of Riverton, Mayor Wilson (SIGRID THORNTON), stands before the media with Chief Quimby to reveal the latest in crime-fighting technology -- the next generation of gadget policing. A large silver pod containing a woman dressed in a smart leather trench coat and hat is revealed. Enter G2 (ELAINE HENDRIX), the latest in gadget technology, she is all robot. G2 gives a quick demonstration of her skills, impressing everyone, and Quimby hands the Claw case to G2. Inspector Gadget has been superceded.

Gadget is consoled by his niece Penny (CAITLIN WACHS). She wants to follow in the footsteps of her favorite crime-fighting uncle and has been doing some sleuthing of her own. She has uncovered a vital clue as to Claw�s whereabouts, giving Gadget the jump on G2.

What follows is a series of hair-raising, gadget-laden mishaps, stakeouts, and public embarrassments for Inspector Gadget as he tries to prove his mettle. Obviously, he is no match for the new improved G2 who aces him at every turn in the quest to recapture Claw. Gadget�s ultimate disgrace forces him to relinquish his badge and the keys to his beloved Gadgetmobile. Fortunately for Inspector Gadget, he has Penny, Brain, and the Gadgetmobile on his side.

As fate would have it, the final component Claw needs to complete his secret weapon -- a giant ruby on loan from the Raja of India -- is being displayed at Mayor Wilson�s fundraising dinner at the Riverton Museum. This event brings all of the major protagonists together in an all-out confrontation. Mayor Wilson, Chief Quimby and G2 are there in an official capacity. Claw and his minions are there masquerading as the band. Gadget is there in his new job, the doorman. Penny, however, has followed her own lead and discovered Claw�s lair at the deserted bowling factory. At the fundraising dinner, chaos reigns supreme. Claw escapes with the ruby, Mayor Wilson escapes with her life but is publicly humiliated in the process, G2 is rendered helpless, and Quimby is left with no choice but to deactivate and decommission the entire Gadget Program.

At the Bowling Factory, Claw�s plan for world domination has gathered momentum, and Penny, whose undercover work has proven correct, has walked right into his grasp. But Brain escapes and seeks out the one person he knows can save the day -- and the world -- from Claw�s evil scheme: Inspector Gadget. Inspector Gadget and G2 are quietly pondering their future when Brain bursts in insisting that Penny�s life is in danger. Busting the ever faithful Gadgetmobile out of the pound, Gadget, G2, and Brain roar off into the night to rescue Penny and put a halt to Claw�s master plan.

Claw�s "10 days to success" plan is almost complete. Time is ticking by and the day of reckoning is here as he unveils his super weapon -- a huge ray gun-like device. Claw has timed the crime for 9:30 -- the exact time that a satellite with a parabolic mirror will pass over the city. Claw plans to use the mirror to reflect a deadly laser beam back onto Riverton, rendering everyone immobile and creating a perfect pathway to the gold bullion! In a race against time, Gadgetmobile pulls some serious G�s getting Gadget, G2, and Brain out of the city limits to avoid the paralyzing rays.

An all-out, drag-down, knock-�em-out fight ensues between the forces of good and evil with Penny still being held by Claw as a human shield. In a terrifying diversionary tactic, Claw launches Penny into the air in a tangle of bombs made out of old bowling balls with dynamite placed in the finger holes. Penny is attached to a 60-second timing device. BOOOOM. G2, Brain, and the Gadgetmobile have been watching in horror when out of the smoke and rubble Penny emerges. Gadget makes a less gracious entry into the scene. G2 has had her robot heart shaken by this incident and in a rare show of emotion, awkwardly hugs him.

It�s high noon on the Riverton bridge when the adversaries finally come face to face. In a gadget-crazy showdown, technology is the winner as Gadget and G2 pull in Claw�s minions but Claw, who has planned for all possibilities, makes his escape by blasting into space in a one-man rocket ship.

Back in electioneering mode, Mayor Wilson makes the most of every opportunity for reelection as she proudly presents Inspector Gadget and G2, now both fully reinstated as Riverton�s prime crime fighters, their Distinguished Conduct Medal. Chief Quimby confirms their appointment and announces he is doubling the Gadget Unit�s budget. Inspector Gadget steps forward to make a special announcement: "Behind every great uncle is a great niece." Penny finally gets the recognition she deserves and is awarded a Junior Inspector award for meritorious conduct. Another moment between Inspector Gadget and G2 suggests that there may be romance afoot.

And what of Claw? Well...