The police are on Cheech and Chong's tails from the start, as they trick the stoners into selling them some of their "ice cream." Sgt. Stedanko (Stacy Keach), now himself a stoner, tests the marijuana and slowly turns into a lizard. Just as the police storm their house, Cheech and Chong pack up the marijuana in their truck and drive off, leaving Weird Jimmy to be arrested. While Sgt. Stedanko continues smoking their product, becoming stranger and more lizard-like, his two deputies Det. Drooler and Noodles tail the stoners.
Chong simply passes out but Cheech endures a bizarre trip that finally ends the next morning when the head nurse awakens them. She has realized what has happened and apologizes to them, returns their money and sets them free. At this point, Stedanko's cops show up and arrest the head nurse and Howie instead, the stoners having escaped prior.
With Weird Jimmy's marijuana plantation busted, Cheech and Chong resort to becoming male strippers at Club Paradise where they are billed as "The Sun Kings."