New rules enforced by the Lady Mayoress mean that sex, weight, height and intelligence need no longer be a factor for joining the Police Force. This opens the floodgates for all and sundry to enter the Police Academy, much to the chagrin of the instructors. Not everyone is there through choice, though. Social misfit Mahoney has been forced to sign up as the only alternative to a jail sentence and it doesn't take long before he falls foul of the boorish Lieutenant Harris. But before long, Mahoney realises that he is enjoying being a police cadet and decides he wants to stay... while Harris decides he wants Mahoney out!

Officer Carey Mahoney and his cohorts have finally graduated from the Police Academy and are about to hit the streets on their first assignment. Question is, are they ready to do battle with a band of graffiti-tagging terrorists? Time will tell, but don't sell short this cheerful band of doltish boys in blue.

When police funding is cut, the Governor announces he must close one of the academies. To make it fair, the two police academies must compete against each other to stay in operation. Mauser persuades two officers in Lassard's academy to better his odds, but things don't quite turn out as expected...