"Rainbow" Randolph Smiley, the charismatic figure behind Kidnet's cherished children's program, hides a tumultuous life plagued by addiction and moral decay beneath his cheerful facade. His world turns upside down when the FBI arrests him for accepting bribes, leading to shocking fallout: his termination, the cancellation of his show, and eviction from his lavish penthouse, leaving him homeless and desperate. In the wake of his scandal, Kidnet executive Marion Stokes must find a replacement who exudes wholesomeness and integrity. She settles on Sheldon Mopes, an earnest and unassuming man whose true passion for delivering quality children's entertainment soon puts him at odds with his new producer, Nora Wells.
As Smoochy the Rhino becomes an overnight sensation, Randolph's envy of Mopes escalates drastically, compelling him to approach Stokes for another chance to reclaim his position. Despite his pleas, Stokes remains firm, forcing Randolph to devise a series of misguided plots to undermine Mopes. Each scheme falls flat, driving him further down into despair until he seeks solace with his former partner, Angelo Pike.
Meanwhile, Mopes finds himself increasingly constrained by the creative decisions of Nora and Kidnet's management. This forces him to engage the services of the unscrupulous talent agent Burke Bennett](/actor/burke-bennett) to help renegotiate his contract. Bennett introduces Mopes to the ruthless dynamics of the entertainment industry, even introducing him to a gun while convincing him to partner with a questionable charity. Over a dinner meeting with Burke, Mopes meets the dangerous mobster Tommy Cotter, who pressures him into casting her cousin Spinner on his program, touting her protection against any repercussions from this arrangement.
As Burke's annoyance with Mopes boils over, he books him for a disastrous Smoochy ice spectacular, concocted by the devious Merv Green and his corrupt charity, Parade of Hope. Mopes obstinately resists Burke's threats, prompting Green to personally intimidate him into compliance. Simultaneously, Randolph cunningly orchestrates Mopes' participation in a Neo-Nazi rally, which leads to Mopes being branded a racist and losing both his job and his show. Sensing a prime opportunity, Nora seizes control, abandoning Mopes and leaving him to deal with the fallout on his own.
In an unexpected visit, Randolph approaches Nora, but this only tightens the noose around him, as he inadvertently exposes his involvement in Mopes' career sabotage. With the media turning against him, Randolph is branded the most hated man in America, while Mopes sees his reputation and show restored.
Refusing to be defeated by his prior failures, Mopes decides to host a grand ice show that is untainted by corrupt charitable influences. Yet, both Burke and Stokes are determined to protect their own reputations, creating a convoluted plan to eliminate Mopes and install a more compliant figure in his place. Their scheme spirals out of control when Green's henchmen mistakenly kill Spinner while he is in his Moochy costume, believing he is Mopes, leading to Tommy's fierce retaliation against Green and his associates.
In a climactic confrontation, Randolph appears at Mopes' apartment, gun drawn, unveiling Nora's history with various children's show hosts, including his own past with her. Mopes manages to de-escalate the situation, disarm Randolph, and offer him refuge until law enforcement arrives. However, Burke and Stokes, determined to rid themselves of Mopes permanently, hire former Kidnet host Buggy Ding Dong to eliminate him during the ice show. Just in time, Randolph intervenes, saving Mopes' life by taking down Buggy.
As Mopes pieces together the truth of Burke and Stokes' treachery, he confronts them with a gun. Just then, Tommy and her crew arrive, intervening just before chaos can unfold, with Tommy taking control of the situation offscreen. In the aftermath of the tumult, Mopes shares a passionate kiss with Nora in Times Square, as Smoochy and Randolph prepare to launch a new joint show, with Nora trading her microphone for a pair of ice skates.
