The story opens on a matinee of a new play in Gotham city, where we see the Penguin discussing the piece with one of the patrons when suddenly a masked man bursts in and tries to rob a woman named Sophia Star's necklace. The Penguin is made furious by this and defeats the robber using a bulletproof umbrella. He returns the Sophia Star's necklace and she is clearly smitten.
At Police Headquarters Commissioner Gordon and Chief O'Hara can't bring themselves to believe that the Penguin could prevent a crime and that Sophia Star left the theatre with him hand in hand. They decide to call Batman in to investigate further. At stately Wayne Manor millionaire Bruce Wayne and his young ward Dick Grayson are practicing their putting when Alfred informs them that a Mr. K Rime is calling with a red hot line of investments for the Wayne Foundation. Bruce tells Dick to come learn about business and the two secretly head for the Batcave. Aunt Harriet remarks that K Rime is a very unfortunate name for a man in the business of investment.
On the way to headquarters Batman and Robin puzzle over the Penguin's clean record since he last left prison. They feel he must be trying some kind of con on Sophia Star and that the robber he stopped must be an accomplice. They call the Commissioner and Chief to start interrogating him. At police headquarters the robber won't say anything about Penguin. So the Commissioner turns out the lights and suddenly Batman's silhouette appears. The crook thinks the room is filled with bats (even though it looks nothing like that) and passes out from fear.
Our heroes are informed that the Penguin has been spotted heading into the Gotham Millionaires Club, so the two decide to head right over. At the club we see the Penguin is in the steam room, rescuing one of the millionaires from being abducted by use of a dry ice umbrella. Batman and Robin arrive just in time for Penguin to rub it in their faces that he's setting up a rival protection agency.
Alfred takes the pictures of Sophia Star's jewels and as he's setting off he suddenly remembers (or is reminded by the narrator) that Batman also told him to swap the Penguin's cigarette holder for one with a tracking device built in. He attempts to do so but the Penguin's umbrella detects the radio signal and Alfred must make a quick getaway.
Using Alfred's picture of the jewels the Dynamic Duo make the fakes and head out to replace the real jewels with them. However they are caught in the act by the Penguin who accuses them of burglary. The two escape, not having made the switch. The next day the papers read that Batman and Robin are jewel thieves. Commissioner Gordon and Chief O'Hara naturally don't believe it. They receive a call from Penguin inviting them to a party at the pier that night. They in turn tell Batman and Robin about it, but warn them that if they see them they'll have to arrest them.
Batman and Robin head to the pier to try and catch Penguin out, but once they arrive they are knocked out by a concrete filled umbrella. The Penguin then strings them up behind a shooting gallery where he invites Commissioner Gordon and Chief O'Hara to fire having replaced the air rifle rounds with real bullets.
BATMAN & ROBIN... A SWINGING PAIR OF DEAD DUCKS!
WHAT ON EARTH CAN SAVE THEM??
DON'T SHOOT, COMMISSIONER! DON'T SHOOT!!!
GOOD GRIEF! GOOD NIGHT!
DOUBLE FUNERAL TOMORROW?
SAME BAT-TIME, SAME BAT-CHANNEL!
CAN YOU SEE ANY WAY OUT??
While Batman and Robin come up with a plan of action over a cold glass of milk in the Batcave The Penguin uses his society friends to demand that Commissioner Gordon start a man hunt for the criminals Batman and Robin and then uses the hotline to call and taunt them. Batman agrees to come to Penguin's protection agency. Once there they pretend to have been driven mad and fight the Penguin's goons before running from the police. However they are cornered in a back alley and shot dead. The Penguin and his goons steal the Batmobile.
Commissioner Gordon tells the press that Batman and Robin are to be buried with full police honours. Then he speaks with Chief O'Hara who tells him just how much all those blanks cost. Batman and Robin weren't killed and it was all part of the plan. We see Batman and Robin watching Penguin use the Batmobile to further woo Sophia Star. We later see him ask her to marry him.
We move to the wedding where Penguin reveals that he plans to steal all the expensive gifts. Setting off the water pipes to leak so that the guests have to be given umbrellas the Penguin activates them all to launch out confetti causing a confusion that lets him send the presents down a chute into the waiting Batmobile.
As Penguin, Dove and Eagle-Eye make their getaway Batman and Robin follow in the Batcycle and use its gadgets to mess with the criminals ultimately getting them all out of the car and beating them in a fight. Later we see that Sophia Star is still willing to marry Penguin, but he'd rather go to jail.
Next week another returning villain makes himself a downright regular. The Riddler.