Michael Knight decides to leave the Foundation after being shot on a case at the Government Data Center. Accepting the young loners resignation, Devon Miles tracks down the one person who can make a difference in Michael's life: his one true love, Stevie Mason and gets the two of them together again.
A small time owner of a lumber company takes on a big rival named Dutton, who happens to be a sponsor of the Foundation. As Michael and K.I.T.T. investigate the case, they realize Dutton is practically forcing the little guys out of business.
The four members of the Curtis trustees are being murdered one at a time. Now only Devon Miles and Dr. Ian Browning are left. Michael suspects that magician Austin Templeton could be the assassin, using his magic act as an alibi in each case. Bonnie disagrees, for she has fallen for the self proclaimed sorcerer's charms.
Michael's CIA pal Lew Jonas gets killed during a raid on crime boss Ronald Becker. Becker plans to get out of the country using the illegal Baja race to Mexico as a cover. Michael vows to catch Becker if it's the last thing he does.
Michael and RC arrive in San Duarte just in time to see Mount Duarte erupt for the first time since 1874. With the lava flow blocking the way in and out of the country, Colonel Perata stages a coup and holds American advisor Harrison and his wife hostage. Michael joins local news reporter and guerrilla leader Lisa Corrales in her fight to reinstate democratic President Sosa.
Michael and RC are meeting with Nick O'Brien, an old friend of Devon's with whom he served in Korea. The end up protecting Nick's adoptive son Coy from Ninja leader Taneka, who is convinced the boy is the rightful heir to his clan.
Michael walks in on a robbery at Towers Gemstones Inc to find three men seemingly under the influence of a voodoo princess. While investigating incidents involving wealthy art collectors, Michael meets Elizabeth Wesley who explains that the object every one is after is the fabled crown of Tequatl.