MI6 dispatches James Bond, portrayed by Pierce Brosnan, on a critical mission to scout out a terrorist arms bazaar near the Russian border. Despite M's insistence that Bond should finalize his reconnaissance, Royal Navy Admiral Roebuck (Geoffrey Palmer) intervenes, ordering the frigate HMS Chester to launch a Harpoon missile at the bazaar. Bond discovers that the bazaar houses two nuclear torpedoes mounted on an L-39 Albatros and must swiftly pilot the aircraft away just in time to avoid destruction as the missile obliterates the bazaar.
The notorious media baron Elliot Carver, portrayed by Jonathan Pryce, launches a devious plan using an encoder procured from the bazaar by his henchman, the cyber-terrorist Henry Gupta (Ricky Jay). With the encoder, Gupta manipulates the GPS signal, leading the HMS Devonshire off its intended course into the treacherous Chinese-occupied waters of the South China Sea. There, it encounters a stealth ship commanded by Mr. Stamper (Götz Otto), which ambushes and sinks the frigate, subsequently shooting down a Chinese fighter jet that ventures to investigate. This series of events escalates tensions, prompting the British Minister of Defence (Julian Fellowes) to call for action while leaving M with a mere 48 hours to uncover the truth and prevent a war.
At MI6, gadget-master Q (Desmond Llewelyn) and Miss Moneypenny (Samantha Bond) assist M (Judi Dench) in sending Bond to investigate Carver, especially after the latter releases news articles about the impending crisis before the Vietnamese government is even aware. Bond jets off to Hamburg, where he rekindles ties with Paris (played by Teri Hatcher), Carver's wife and an ex-girlfriend of Bond's. His aim is to glean information to infiltrate Carver's newspaper headquarters. During his escapade, he bests three of Stamper's men and successfully cuts off Carver during the live debut of his satellite network.
In a twist of fate, Paris decides to aid Bond by revealing critical information that leads him to Carver's newspaper factory to retrieve the GPS encoder. However, Carver learns of their reunion and orders their execution. As Bond escapes with the encoder, Paris is tragically killed by Carver's assassin Dr. Kaufman (Vincent Schiavelli) upon his return. Bond retaliates, killing Kaufman and managing to flee in his remote-controlled BMW.
At an Air Force base in Okinawa, where he meets Jack Wade (Joe Don Baker), Bond learns that the encoder had been tampered with, misguiding the Devonshire into Chinese waters. Determined to uncover the truth, he enlists the help of Wai Lin, an agent from the Chinese Ministry of State Security, portrayed by Michelle Yeoh. Their investigation leads them to the sunken ship where they discover a stolen cruise missile.
After a daring escape from Carver's grasp, they realize Carver intends to incite a war using the missile to eliminate the Chinese government. Their plan is to stop the missile from being fired at Beijing, where Carver hopes to gain broadcasting rights in China for the next century in the aftermath of the conflict. With adrenaline coursing through their veins, they infiltrate Carver's stealth ship, leading to a sequence of explosive events where loyalty, deception, and survival all collide.
In a gripping showdown, Bond manages to turn the tables on Carver and subsequently detonates an explosive that exposes the stealth ship to radar detection. As they brave the perilous situation, Wai Lin becomes trapped and is recaptured, prompting Bond to unleash a final rescue mission. This culminates in Bond's confrontation with Carver, leading to a climactic explosion that destroys the ship, and amidst the wreckage, Bond and Wai Lin share a passionate moment as help arrives to search for them.
