French nuclear tests irradiate an iguana into a giant monster that viciously attacks freighter ships in the Pacific Ocean. A team of experts, including Niko Tatopoulos, conclude that the oversized reptile is the culprit. Before long, the giant lizard is loose in Manhattan as the US military races to destroy the monster before it reproduces and it's spawn takes over the world.

The gang that created Airplane! and The Naked Gun sets its sights on Top Gun in this spoof. Topper Harley is a talented but unstable fighter pilot with an axe to grind: clearing the family name. His mission is to avenge his father and save a mission sabotaged by greedy weapons manufacturers. He also gets involved in a relationship with Ramada Thompson, a woman with an unusually talented stomach. Hot Shots! makes fun of a variety of other films, from Dances with Wolves to The Fabulous Baker Boys.