| Director | Richard Donner |
|---|---|
| Budget | $15 million |
| Box office | $120.1 million |
Following the recent death of his wife, Los Angeles Police Department (LAPD) narcotics Sergeant Martin Riggs, a former Special Forces soldier, has become suicidal and erratic. Despite the protests of police therapist Stephanie Woods, Captain Ed Murphy believes that Riggs is faking his psychosis to be forcibly retired with a generous pension and partners him with fellow war veteran and seasoned Homicide Sergeant Roger Murtaugh. Riggs and Murtaugh do not get along well, as Murtaugh is initially dismissive of Riggs's mental state, but he is soon convinced that Riggs is genuinely suicidal.
During the Christmas season, Murtaugh is contacted by his former Vietnam War comrade, Michael Hunsaker, ostensibly to rescue his daughter Amanda from a life of drugs and pornography. Before they can meet, though, Amanda jumps to her death from an apartment balcony. An autopsy later reveals that she was poisoned with tainted drugs, indicating that she would have died even if she had not jumped. Riggs and Murtaugh attempt to question Amanda's pimp, but are ambushed after finding cocaine on the premises, forcing Riggs to kill the pimp to save Murtaugh. Their final lead is Dixie, a prostitute who witnessed Amanda's death, and whom the pair believes has poisoned her. Dixie's home explodes as they arrive, and her corpse is later recovered. Riggs locates components of a mercury switch explosive among the debris, a specialty explosive he recalls being used by Central Intelligence Agency (CIA) mercenaries in the war. The bomber was witnessed by neighborhood children, who noticed that he had an elite Special Forces tattoo similar to Riggs'.
Suspecting that Hunsaker is withholding information, Riggs and Murtaugh visit him at Amanda's funeral. He reveals that during the Vietnam War, he worked for "Shadow Company", a defunct CIA paramilitary unit tasked with destabilizing the local heroin trade. Following the war, those involved reformed Shadow Company as a drug-smuggling operation under the leadership of retired General Peter McAllister and his right-hand man, Mr. Joshua. Hunsaker's role as a banker allowed him to make the illicit funds seem legitimate. Hunsaker initially called Murtaugh to confess and turn witness against Shadow Company, but McAllister had Amanda killed in retaliation. Joshua arrives in a helicopter and kills Hunsaker before escaping. He later shoots Riggs in a drive-by shooting, unaware that Riggs wore a bullet-proof vest. Riggs fakes his death in the aftermath to give the pair an advantage.
Concerned that Murtaugh knows too much, Shadow Company kidnaps his daughter Rianne and forces him to meet them at El Mirage Lake. Riggs provides sniper support to help them escape, but all three are captured and taken to a nightclub basement, a Shadow Company front, on Hollywood Boulevard. Riggs and Murtaugh are tortured for information until Riggs escapes, kills several Shadow Company members, and frees Murtaugh and Rianne. As the three escape, Murtaugh fires on McAllister as he flees in a car, which flips over, detonating the grenades inside; Joshua, however, escapes after a chase with Riggs on the freeway. Deducing that Joshua will seek revenge at Murtaugh's home, Riggs and Murtaugh ambush him. Riggs defeats him in a brawl, but chooses not to kill him. Police officers take Joshua into custody, but he breaks free, takes an officer's revolver, and attempts to shoot Riggs and Murtaugh; the pair returns fire, killing him.
A short time later, after visiting his wife's grave, Riggs shares Christmas Day dinner with Murtaugh and his family. He gives Murtaugh a hollow-point bullet he had been saving to commit suicide, as he no longer needs it.