A man and his family move from a crime-ridden inner city suburb to a self-proclaimed violence-free haven overseen by a godlike businessman. However, they soon discover that life in The Colony is much more sinister than it first appeared.

Nice Dreams - it rhymes with ice creams. And that's what Cheech and Chong are selling in this thoroughly wacky comedy. The outrageous, permanently spaced-out duo sells enough of their "specially mixed" ice cream to take the cash and realize their fondest dreams: new guitars, islands in the sun and beautiful women. But, of course, not everything goes as planned. While celebrating their wealth in a new wave Chinese restaurant, Cheech meets his long-lost love Donna, and promptly escorts her to her posh penthouse. He soon learns, however, that Donna's boyfriend, an ex-con named Animal, is on his way to her boudoir. Meanwhile, Chong has unwittingly exchanged all their money for a worthless bank check - and the only way to get it back is to escape into a nearby insane asylum.