The time is 1953. Indiana Jones is something of a recluse, living in anonymity. After Marcus Brody died, his good friend and colleague, Indiana retired from teaching and globe-trotting in the late 40's. He now lives in some house in Juneau, Alaska. Nobody has heard from him in ages (presumably he spends time reading and fishing, and occasionally is an air pilot). A former A+ student of Indy's, Dr. Victoria Smith, a revered teacher and an amateur archaeologist, has a passion for adventure and has traveled around the world in search of artifacts, some of which turned up to be hoaxes (Golden Mongoose being one of them). She is told one day by a Russian student that a secret map may exist somewhere in the basement of the school - it supposedly leads to a sacred locket with secrets to an atomic bomb (this would figure in an opening sequence involving Dr. Jones and Dr. Smith, circa 1947).

Flash-forward to 1953 where Dr. Smith is on a peace mission to find a revered artifact belonging to the Russians - a Sword Kladenet. If found intact, it would help resume relations between the U.S. and Russia. This artifact is kept in a cave inside the mountains of western New Mexico. Naturally, through the efforts of Indy's on/off again love interest, Marion Ravenwood, Victoria decides to recruit Indiana for one last adventure since she needs an experienced guide. Indiana is reluctant at first but decides to assist his most prized student. After all, this would be a return to the adventures he used to have - the gleam is back in his eye. Gold, money, fortune and glory! Maybe he can live more comfortably in his retirement years? Well, no, the reason is more like receiving a Presidential Medal of Freedom, and not much more except respect.

Marion Ravenwood is a fearless motorcyclist and owner of her own bar, "The Raven" (patterned after the one she had in Nepal), though she often dresses like an earth mother. Marion is so fearless that she carries a whip with her everywhere she goes (a 6-foot whip, not the kind Indy would carry). She still loves Indiana and still hopes that they can survive as a family. Marion also has a daughter, Billie Joe Ravenwood, who is in the Navy but has been thrown out (she is an aspiring, daredevil journalist who always carries a camera with her). Whether or not Billie is or isn't Indy's daughter remains speculative - let's say it is a big twist.

But trouble is brewing in America when it is discovered that Indiana Jones may be a secret spy and responsible for passing reliable information on nuclear weapons to the Russians, thanks to his alliance with Victoria Smith, herself a Communist sympathizer. A worldwide manhunt is instigated by President Eisenhower to find Indy and bring him to justice (after showing Russia advertising him as a Commie in Communist propaganda posters). This is, in fact, all a ruse to get the real villain, Dr. Nikolai Tesmond.

A power-mad Russian scientist, Dr. Nikolai Tesmond has recruited a former Russian soldier, Boris Feodor, to find Indy who sort of dresses in the same leather jacket and fedora. Nikolai's plan is to fire a nuclear weapon from Los Alamos to Russia and blame it on America! The missile base, constructed by the Russians, happens to be located in the fabricated cave where the sword Kladenet is housed. Originally, Dr. Tesmond secured the help of Victoria Smith to find the sacred sword Kladenet - the actual golden sword is a fake that is sold to a museum for money to finance Nikolai's dastardly plans. Victoria is unaware that this was all a wild goose chase, though Indiana can barely trust her. Everyone is after Indy now!

Marion, Billie Joe and Indiana Jones travel from New Mexico (after a few double-crosses and mishaps) to the Iron Curtain to find the possibly treacherous Victoria Smith who may know where the real Sword Kladenet is. Dr. Tesmond has more than being a powerful scientist in mind - he wants to take over Stalin's position in Russian and control the minds of the population with the Sword Kladenet! But then there is an impending Soviet nuclear test in the Siberian Desert where an unholy, powerful temple is nearby that may contain the source of power the Sword Kladenet needs for anyone who possesses it! Will Indy, Marion and the treacherous Victoria save the world from nuclear annihilation, or will the ancient Sword Kladenet save them?