At the height of his power, Tony is married to Elvira (Pfeiffer) and lives in an enormous mansion, but is still not completely happy - and the drugs are starting to take an effect on his fragile mental condition. After one fight too many in a restaurant, Elvira leaves Tony for good.
To avoid extortionate fees from his bank manager to take his drug money, Tony meets with a contact of Manny's - but is secretly filmed and arrested. He hires the best lawyer in the state, and although he might get off for money laundering, he will still have to serve a few years for tax evasion. Tony is desperate as he does not want to do time again.
He is called to Sosa's estate in Bolivia where he meets with leading, corrupt, politicians and an aide from Washington. They tell Tony that if he can help with their problem (an investigative journalist who is digging a little too deep into their affairs), they can keep him out of prison. All he needs to do is take Mr. Shikadance from Ace Ventura, who cannot speak English, to New York where he will assassinate the journalist.
While in New York, they take a break from the usual sight-seeing to plant a bomb under the journalist's car. They stake him out and then follow when he leaves the hotel - only to see him double-back and pick up his wife and kids. Tony's conscience cannot take it, but the Bolivian doesn't care. Just as Alberto is about to blow them up, Tony shoots the assassin in the head.
Back in Miami, an irate Sosa tells Tony that the journalist gave his speech to Time Magazine and all them, which has revealed too much about his business interests, and they even found the bomb which brings more weight to his findings. The war has started.
Meanwhile, Tony's sister Gina and Manny have been missing for a while. Tony is handed info on where she was last seen and they travel together to an address which, being a huge plot hole, should be familiar to him by now.
His best mate Manny, of course, opens the door wth Gina behind and Tony does the psycho stare where his eyes twitch before he shoots his best friend in a jealous rage. The henchmen drag Tony and a hysterical Gina back to the car to get back to the mansion before the cops show.
Tony sits at his desk, snorting a mound of cocaine, while Gina walks in acting strange - tempting him before trying to kill him. All around the mansion a small army of little Bolivian ninjas are sneaking around everywhere, getting ready to kill their new enemy.
The henchmen are soon taken out - and through the open window Gina is shot and she dies in Tony's arms.
Shaking off his stoned demeanor, he picks up a grenade laucher and blows out the doors to his office killing about 4 little ninjas in the process. He starts to look around for a bigger gun, tells them to say hello to his little friend, and shoots up his lovely mansion - which is a shame. He gets shot a few times, until Sosa's chief weapon sneaks up behind and shoots him in the back. Tony falls and crashes into his indoor fountain pool.
The movie ends with a non-racist/xenophobic comment that not all Cubans are psychopathic criminals with a thing for Coke, but some contribute to American society.