The warrior Deathstalker is tasked by an old witch lady to obtain and unite the three powers of creation - a chalice, an amulet, and a sword - lest the evil magician Munkar get them and use them for nefarious purposes. After obtaining the sword, Deathstalker joins with other travellers going to the Big Tournament to determine the strongest warrior. The false king holds the true princess in captivity, and plots to have Deathstalker killed, and Deathstalker must fight to free the princess.
- In the opening scene, we are introduced to the nomadic warrior/outlaw Deathstalker (Richard Hill) who fights a swarmy treasure hunter who has taken a beautiful maiden captive and is chased by a group of Barbarian warriors. Deathstalker dispatches the Barbarians as well as the treasure hunter who attempts to rape the girl. Deathstalker tries to comfort the girl, hoping that she will respond to his suttle nature, but she runs away.
Deathstalker is sent by a witch on a quest to find a chalice, an amulet, and a sword, two of which are held by the wicked sorcerer Munkar (Bernard Erhard). Deathstalker finds the sword almost immediately, which has been hidden by the witch in a cave guarded by an ogre and an imp. The imp Salmaron reveals himself to be a thief cursed by the witch and aids Deathstalker in defeating the ogre. Deathstalker removes the curse from Salmaron and the thief agrees to accompany Deathstalker on his journey. Sword in hand, Deathstalker sets out to Munkar's castle to gain the remaining objects of power.
On his journey, Deathstalker meets a charming fellow warrior, dressed in midriff-baring armor, who introduces himself as Oghris (Richard Brooker). Oghris tells Deathstalker about a tournament that he is traveling too and invites Deathstalker to tag along with him. Oghris explains that Munkar has invited warriors from across the land to participate in contests until a winner is determined - the winner will inherit Munkar's kingdom. One night along the way to the tournament, the pair meet Kaira, a female warrior (Lana Clarkson) who wears only a G-string and a cloak. Later that night Deathstalker removes Kaira's skimpy outfit and has passionate sex with her. She joins the group on their journey the next morning.
Munkar reveals to his assistant that his true agenda is for the warriors to fight each other to the death until only a weakened survivor remains for Munkar to kill. This would remove all threats to his rule. Arriving at Munkar's castle, Deathstalker, Oghris, Kaira and the other participants gather in Munkar's banquet room the night before the tournament. The warriors are invited to get drunk and rape Munkar's harem slaves, including Princess Codille (Barbi Benton). Oghris connects with one slave girl while Kaira keeps Deathstalker to herself. Deathstalker rescues Princess Codille, briefly, but Munkar takes her back. Munkar transforms his assistant into the likeness of the Princess and sends him to kill the hero; when Deathstalker attempts to rape Codille, he discovers that the woman is not all "woman" and sends her away. Kaira finds the assassin; assuming she is the real Codille, she is tragically killed by the assassin in a sword fight after Munkar's disguise spell wears off.
The night after the first day of the tournament, Oghris is taken by Munkar's men to a prison cell while Salmaron is attacked by prison guards. The thief is knocked into a well that leads to Munkar's harem. It is revealed that Oghris brought Deathstalker to the tournament expressly for Munkar and he is ordered to kill him. Reluctant to kill his friend, Oghris warns Deathstalker and asks the hero to just leave the tournament but Deathstalker refuses and attacks him. During the brawl, Oghris has the chance to draw the sword and kill Deathstalker but chooses to fight fairly and ultimately loses. Deathstalker says goodbye to the fighter and kills him.
The last day of the tournament arrives and there are only two competitors left - Deathstalker and an ogre. After a long fight, Deathstalker kills the ogre and moves to claim his prize. He is attacked by Munkar's men but makes his way to the amulet. Salmaron is discovered in the harem room but frees the women and helps them slay the guards. Deathstalker defeats the holder of the amulet and faces Munkar; he is able to defeat the sorcerer's illusions and claims the third object of power. Deathstalker declares he has no interest in Munkar's power or kingdom - he destroys the three objects of power and throws Munkar to a crowd of slaves who tear him apart.