The Nano Bots have rebuilt Red Dwarf and Lister, Kochansi, Kryten and Cat find that the Nano Bots have not only rebuilt the ship, the Nano Bots have resurrected the crew and they find themselves in big trouble, as they find themselves standing trial for a series of crimes. Lister tries to persuade Rimmer to allow him to escape and to track down the Nano Bots, the only way for Lister to convince Rimmer is by helping Rimmer find the Luck virus in Starbug's wreckage.
After discovering the luck virus and the confidential reports in Starbugs wreckage, Rimmer begins his scheme to get promoted, and he begins to impress Captain Hoillister and the sexual virus he has also found in Starbugs wreckage is making him attractive to every female crew member on-board Red Dwarf. Kryten is reprogrammed and has his factory settings restored. And Lister takes some of the luck virus and he Kochanski and Cat set out to escape and search for the Nano Bots.
Lister, Kochanski, Kryten, Cat and Holly escapes on board Blue Midget and they begin their search for the Nano Bots. Rimmer discovers Lister, Kochanski, Kryten, Cat and Holly are in a artificial reality program, where they are being observed by Captain Hoillister, as part of their trial.
Sentenced to 2 years for stealing the confidential reports in 'The Tank' on Floor 13. Lister signs up for the 'Canaries', unaware the 'Canaries' is a convict army and he has also signed up Rimmer, Cat, Kryten and Kochanski. Their first assignment is to investigate a abandoned spaceship on a ocean planet, where they discover Cassandra, a computer that can predict the future. But it spells bad news for Rimmer, when Cassandra predicts that he is going to die.
Kill Crazy reprograms Kryten, and Kryten puts on "Krytie TV" a pirate entertain show for the convicts, where Kryten goes into the women's shower room and exposes the naked bodies of the female convicts including Kochanski, after making the mistake of revealing that he showers with the female convicts, after being placed in the Women's wing of the prison. Rimmer and Lister have been given a retrial, and Kryten endangers their only chance of freedom, when he sets up Lister by messing up Mr. Ackerman's sleeping quarters.
After playing a practical joke on Warden Ackerman, Lister and Rimmer along with Kochanski, Kryten and the Cat are forced to take on the guards led by Warden Ackerman in a game of basketball. When they spike the guards' juice with a drug which gives them erections for 7 hours, Lister's and Rimmer's punishment is to peel all the potatoes for 2 weeks. Kryten, Kochanski and Cat investigate a derelict spacecraft, where they discover "The time Wand" a time device.
Kryten has accidentally turned Birdman's pet bird "Pete" into a T-Rex which has gone on a rampage on-board Red Dwarf. With the crew frozen in time, Rimmer, Lister, Kryten, Kochanski, The Cat and Holly attempt to stop Pete, and get back the Time Wand which Pete has eaten, and restore Pete back to normal before the freeze wears off.
A escape pod containing a "Microbe", a genetically-engineered virus that eats metal and programmed not to harm glass, has arrived on-board "Red Dwarf" and begins to eat away at the ship. Left aboard to die, Rimmer, Lister, Cat, Kryten, Kochanski and Holly believe their only chance at finding an antidote is in a mirror universe where everything is opposite. Rimmer is sent in, hoping for success before Red Dwarf is destroyed by the Microbe.