The North American anti-terrorist force Team America attacks a group of terrorist in Paris. Later, the leader of the organization, Spottswoode, invites the famous Broadway actor Gary Johnston to join his world police and work undercover in Cairo in a terrorist organization and disclose their plan of destroying the world. The Team America destroy the cell of terrorists, but then the Panama Canal is attacked by the criminals as a payback. Gary feels responsible for the death of many innocents and leaves the counter-terrorism organization. When the leader of North Korea, Kim Jong II, joins a group of pacifist actors and actresses with the intention of using weapons of massive destruction, the Team America tries to avoid the destruction of the world.