One of the US Air Force's most modern tactical aircrafts, an F-100 with a new laser guidance system, crashes into the sea near Malta - a region where the Soviet forces are highly present, too. The CIA immediately sends out their best secret agent, Ken Tani, to salvage the system before it falls into enemy hands. To ensure his loyalty, they bring his two young sons to a nearby hotel on the island.

The Fighting Eagle returns again, sans Thong, to the legendary realm of Dragor to do battle with Phaedra, an evil sorceress. Her main weapon is an unstoppable warrior, known as the Master of the Sword, who continuously battles Ator to a draw, until finally revealing his secret connection to the Blademaster.