C.J. Jackson, the man who murdered Michael's predecessor at the Foundation, Ken Franklin breaks out of jail with help from a Self destruct robot disguised as a radio and a drone car. The masterminds behind his escape, David Halston and Margo Sheridan, are gathering a team to stage a break into a San Francisco vault. Michael and Devon ask Bonnie, who is studying at the university there to help them on this case. Her mentor at the university just happens to be David Halston.
A collection of diamonds is stolen from a Foundation sponsored charity auction. Michael and Kitt follow one of the thieves to the Monestary of the Grape in Napa. Here a plastic surgeon is providing criminals with new faces for a percentage of their takings.
A cheerleader named Stacy Courtney gets severely injured during an illegal drag race called Banzai-running. As she happens to be the daughter of Michael former partner on the L.A. police force, he decides to investigate. It soon leads him and K.I.T.T. to the owner of Michael's favorite football team, the Cougars.
Bonnie has just moved into a new apartment. Next door a rowdy party is going on two days before Halloween. She appears to witness a woman being strangled by someone wearing a gorilla costume but passes out. When Bonnie calls in help from the Foundation, at first it all seems to have been a fever induced hallucination on her part. Is it all in her mind or will Bonnie be the next victim come Halloween?
K.I.T.T.'s bad tempered prototype K.A.R.R. is found buried in the sand by mechanic John Stanton and his girlfriend Mandy. K.A.R.R. convinces Stanton to replace his damaged parts and give him a new look. Then he sets out to take his revenge on K.I.T.T. and Michael Knight. After turbo boosting into the Foundation's semi, John and K.A.R.R. take possession of an improved laser Bonnie was preparing for K.I.T.T. to use against his evil twin.
Michael is suspended from FLAG after a bag of heroin is found in his pocket. He contacts the main suspect he was after, LaSalle, in an attempt to clear his name. However, LaSalle orders Knight to steal K.I.T.T. from the Foundation and use him to steal a dangerous nerve-gas.
While Michael Knight and K.I.T.T. are on a case to stop the sale of deadly chemicals, a young dancer is inadvertently killed by toxic gas. Michael becomes determined to capture the criminals behind this new poison, but they are equally adamant to get rid of Knight by feeding him their deadly concoction.
K.I.T.T. gets electrocuted during a chase and loses his memory. After he and Michael get separated, K.I.T.T. befriends a young boy named Doug Wainwright. Unfortunately, the two crooks Michael and K.I.T.T. were chasing think Doug can identify them and decide to go after the boy.
A criminal known as 'The Chameleon' uses his gift as a master of disguise to escape on the way to a court hearing. He contacts Armand Pressler for one last job and plans to take his revenge on the man who put him in jail two years earlier, Michael Knight. So, in order to catch the Chameleon red handed, Michael takes on a guise as well, that of soldier of fortune 'Jack Smith'.
Michael Knight and K.I.T.T. come to the aid of some fashion designers after two of their ilk are murdered by a custom car. When Knight gets hurt by the car in question, he starts to take the case personal.
An acquaintance from a previous case, Maxine Flemming, loses her race horse King Jack after an accident. However, Michael soon surmises that the horse hasn't been shot as Maxine was led to believe, but being put is up for sale by her partner Tommy Lee to pay of his gambling debts.
While on the trail of toxic polluter "Acid" John Birock, K.I.T.T. ends up in a pit filled with acid and is all but destroyed. The car has to be rebuilt from scratch by the original design team consisting of Dr. Von Voorman, Dr Breland and Dr. Numata. But once reassembled, the world's most sophisticated car seems to have lost it's nerves.
Bonnie asks Michael to look into the apparent suicide of her idol, Harley Freeman. Michael disguises himself as computer scientist Dr. Knightwood and parachutes into 'the Retreat', a private rest and relaxation compound filled with beautiful women. K.I.T.T. has to stay out of sight and finds himself coping with Sheeba, the lion cub the women's keep as a pet.
A truckload of confiscated weapons including 2 laser rifles are stolen from a police warehouse. Michael finds a female hitchhiker selling part of the shipment at a Survivalist convention held at a hotel.