In the 1970s, a bold advertising campaign promotes Anaconda Malt Liquor as the only malt liquor sanctioned by the U.S. government, specifically targeting the African American community. The story follows Black Dynamite (BD), portrayed by Michael Jai White, a former CIA operative and Vietnam War veteran, who is a master of Kung Fu. After the tragic murder of his younger brother Jimmy (Baron Vaughn) at the hands of a nefarious organization, BD vows to rid the streets of drug dealers and gangsters. He had made a solemn promise to his mother (Cheryl Carter) to protect Jimmy, a responsibility he now feels he has failed.
Jimmy was one of three African American heroin distributors working for a shadowy figure, and his status as a snitch led to his brutal demise. Honeybee (Kym Whitley), a madame running a brothel under BD's protection, provides him with crucial intel, revealing that children are suffering from heroin overdoses on the streets, and she pleads for his help.
BD's former colleague, O'Leary (Kevin Chapman), brings him back into the fold of the agency, concerned that his quest for vengeance could lead to chaos. Haunted by memories of the Vietnam War and the consequences of his actions, including the deaths of innocents, BD wrestles with his past. Further complicating matters, he uncovers that the criminal organization is supplying heroin to African American orphanages. Gloria (Salli Richardson), an activist working at the local orphanage, decries a Congressman named James (Tucker Smallwood) who has cut drug awareness programs in favor of Anaconda Malt Liquor advertisements, which she believes detrimentally affects her community.
Through his allies, Bullhorn (Byron Minns) and Cream Corn (Tommy Davidson), BD learns that Chicago Wind (Mykelti Williamson), a dangerous gangster, was connected to Jimmy’s death. In an intense confrontation, BD defeats Chicago Wind's crew in a spectacular Kung Fu showdown that ultimately leaves Chicago Wind dead after he plummets off a cliff.
The narrative unfolds as BD discovers that Jimmy was secretly working for the CIA and was investigating Rafelli (Mike Starr) before he was killed. As BD tracks down Rafelli, he faces off against relentless assassins but manages to save Gloria. After gathering intel, BD bravely confronts the heads of the local drug trade and declares war, successfully purging the streets of their influence.
His investigations lead him to the corrupt Congressman James, where he pilfers a ledger containing incriminating evidence of illegal shipments. As he rounds up his team, BD learns about a covert operation called "Code Kansas," which aims to undermine African American men through targeted advertising for Anaconda Malt Liquor. They uncover a shocking truth: the liquor is designed to harm Black men's masculinity.
BD's quest culminates in a confrontation with Fiendish Dr. Wu (Roger Yuan) on Kung Fu Island, revealing that he was behind the foul formula in Anaconda Malt Liquor. Following a fierce battle where many of his closest allies are lost, BD finally traces the evil back to the highest level of government—the White House.
The climactic showdown with President Richard Nixon (James McManus) leads to a dramatic Kung Fu battle, during which BD is aided by the ghost of Abraham Lincoln (Pete Antico). After triumphing over Nixon, BD chooses not to execute him but instead leaves him as a reminder to keep an eye on his people. The film concludes with BD’s heartfelt monologue, reflecting on his fight for justice, as both Gloria and Pat Nixon (Nicole Sullivan) watch with admiration.
