Danny Madigan, is a boy whose love of action movies keeps him out of school and in trouble. His favorite movie franchise is the fictional Jack Slater series, which is preparing for the release of its fourth installment.
On the day before the premier of Jack Slater IV, Danny visits his friend Nick, an old man who runs a run-down movie theater in downtown New York City. He offers Danny a private screening of the film, an offer which Danny is quick to accept, especially when Nick offers him a gold-plated ticket which he claims was given to him by Harry Houdini.