Warner Bros. contract players BUGS BUNNY and DAFFY DUCK are up to their feuding ways again. Tired of playing second fiddle to Bugs, Daffy has decided to leave the Studio for good. He is aided by Warner Bros.' humor impaired Vice President of Comedy, Kate Houghton (JENNA ELFMAN), who releases him from his contract and instructs WB security guard/aspiring stuntman DJ Drake (BRENDAN FRASER) to capture and "escort" Daffy off the studio lot. (In other words, he's fired and tossed out on his tail feathers.)
Suddenly a sidekick without a hero, the duck decides to ally himself with DJ, whether he likes it or not. Consequently, Daffy is on the scene when 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.