The Dukes meet up with a father and daughter on the run from the Slavonia secret police. They defected after the father developed a formula to turn seawater into gasoline. Unfortunatly, Boss finds out about the formula and steals it first. The Dukes have to save the family and get the formula before they can get back in the race.
The Dukes and Boss visit Billy Bob and June Stewart of Hazzard. They inherited a castle that's haunted, but it turns out the ghosts are counterfiters trying to keep their hideout. When Boss steals the money, the crooks force Coy and Vance to get it back or they'll do away with the Stewarts and Daisy.
Boss hires some local pirates to capture the Dukes and hold them while he buys cheap goods he can resell for a profit back in Hazzard. The pirates capture the Dukes, then capture Boss, steal all his goods and make him and Rosco walk the plank. It's up to the Dukes to keep Boss and Rosco from becoming sushi.
Boss has his buddy, the Grand Vazir, set up traps to slow down the Dukes. The Grand Vazir is trying to keep his nephew, Prince Ahmed, from coming to his corination ceremony. That way, the Grand Vazir can claim the throne. Turns out, Vance is a dead ringer for Prince Ahmed. So when he is caught instead of the Prince, the Dukes and Ahmed have to free him and claim the throne.
During a luggage mixup at the hotel, Rosco gets hold of Alladin's lamp. When the Dukes reach the hotel, Boss tells Rosco to hide the lamp, which he does in a hotel shop. Then Daisy purchases it as a souvenier. All this time, the evil Sharif Omar, who stole the lamp originally, is scheming to get it from Boss and the Dukes.
Two bank robbers steal the General Lee from in front of the Roman Colisseum to use as a getaway car. After the theives make their robbery, the boys and Daisy manage to get him back. Boss tells the police it must have been the Dukes so they'll get caught and he can win the race. Now the Dukes have to avoid the police and catch the crooks just to get back in the race.