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In this follow-up to the 1984 hit, Romancing the Stone, it’s hard to live up to a “happily ever after ending”, especially for a successful romance novelist like Joan Wilder (Kathleen Turner), who has learned more about romance in the chase than she does in the union of the two would-be lovebirds. It’s affecting her work, as she struggles to come up with new dreams and situations to fuel her romance novels, resulting in a prolonged bout of writer’s block. As Joan and her hunky man of adventure, Jack Colton (Michael Douglas), have spent their time living the life of luxury partying in Cannes and sailing on their yacht off the French Riviera, boredom begins to set in, realizing the excitement in their lives lie more in reminiscing, causing them to wonder if their good run of romance has run out as they near the expectation of their marriage in Greece.
When a well-known leader within the fictional North African country of Kadir, a supremely wealthy sheikh named Omar (Spyros Fokas), approaches her to write his life’s story, on the hope of elevating his status among his people to become the new emperor there, Joan sees new possibilities to change her scenery, her outlook, and her horizons as a writer. Jack and Joan reluctantly split up, but when Jack catches wind that Omar may be in possession of the mysteriously alluring “Jewel of the Nile”, his soldier-of-fortune ways get the better of him, so he decides to get a closer look in Kadir, as does the diminutive lowlife named Ralph (Danny DeVito), who insists that Jack owes him enough for them to help each other get the jewel and split their fortune. Meanwhile, Joan discovers that Omar’s dark side and his attempt at a bloody power grab, leading her to try to get the scoop, as well as help spring a valuable prisoner who is seen as a folk hero to the people of the region, and therefore, Omar’s greatest threat to be respected as leader.