Woodrow “Woody” Wilkins is an imaginative, yet eccentric, comic book writer and illustrator who demands a sense of realism for his comic book hero “Condorman”, to the point where he crafts a Condorman flying suit of his own and launches himself off the Eiffel Tower. The test flight fails as his right wing breaks, sending him crashing into the Seine River. Later after the incident, Woody is asked by his friend, CIA file clerk Harry, to perform what appears to be a civilian paper swap in Istanbul. Upon arriving in Istanbul, he meets a beautiful Soviet woman named Natalia Rambova, who poses as the Soviet civilian with whom the exchange is supposed to take place, but it is later revealed that she is in fact a KGB spy. Woody does not tell Natalia his real name, and instead fabricates his identity to her as a top American agent code-named “Condorman”. During the encounter, Woody fends off a group of would-be assassins and saves her life by sheer luck before accomplishing the paper trade. Impressed by Woody, and disgusted by how she was treated by her lover/boss Krokov when she returns to Moscow, Natalia decides to defect and asks the CIA to have “Condorman” be the agent that helps her.
Back in Paris, Woody’s encounter with Natalia inspires him to create a super heroine patterned after her named “Laser Lady”. He is then notified by Harry and his boss Russ that he is to escort a defecting Soviet agent known as “The Bear”. Woody refuses to do the job, but when Russ reveals that “The Bear” is Natalia, he agrees to do it on the condition that the CIA provides him with gadgetry based on his designs.
Woody meets up with Natalia in Yugoslavia and protects her from Krokov’s henchmen led by the homicidal, glass-eyed assassin Morovich. After joining Harry in Italy, the trio venture to Switzerland, where Natalia discovers the truth about Woody when a group of children recognize her from his comic books. Their journey back to France is compromised when Morovich puts Woody and Harry out of commission and Krokov’s men recover Natalia before retreating to their headquarters in Monte Carlo. Woody is told that the mission is a failure and he and Harry are ordered to return to Paris, but Woody asks Harry for two more days to conduct an operation to rescue Natalia.
Disguising themselves as Arab sheiks, Woody and Harry create a diversion at the Monte Carlo Casino to recover Natalia from Krokov and his men. As Harry drives away in a Rolls-Royce, Woody uses an improved version of his Condorman suit to fly himself and Natalia out of the casino and onto the pier, where the trio make their getaway aboard the Condorboat. They manage to destroy Krokov’s speedboats following them, but Krokov and Morovich pursue them in their own speedboat. The Condorboat reaches its pick-up point, but Morovich shows his intent on ramming it. When Morovich ignores his commander’s orders to return to base, Krokov abandons ship. The Condorboat is lifted by the CIA helicopter in time to prevent a collision, causing Morovich to crash on an island rock.
Days later, Woody, Natalia and Harry are at Dodger Stadium in Los Angeles, where they see the Goodyear Blimp flash a sign welcoming Natalia to the U.S. Aboard the blimp, Russ contacts Harry and has him ask Woody if he is interested in taking Condorman to another assignment.