
On his way to the kingdom of Scyros to meet Hercules
 (Kevin Sorbo), Iolaus (Michael Hurst) comes upon
 Autolycus (Bruce Campbell), who is suffering the blows
 of five rough-looking men as he struggles to hang onto a
 large wooden box. Believing that Autolycus is being robbed by bandits, Iolaus springs to the lone man's defense with a sword and scabbard and forces the attackers to retreat. To his surprise,however, Autolycus hurls a grappling hook over a tree branch and swings off into the forest, leaving Iolaus to fend for himself as he is surrounded by the returning ''ruffians,'' who are now accompanied by constables. Caught with the wooden box
containing stolen jewels from the King's treasury, Iolaus is arrested and taken into custody, unaware that Autolycus has escaped with the Dragon's Eye ruby - the priceless gemstone from the King's scepter. 
When Hercules arrives in Scyros, he learns that Iolaus
is facing execution for plundering the royal vaults.
Unable to convince King Menelaus (Martyn Sanderson)of his friend's innocence, Hercules is taken to the prisoner's cell by the King's daughter Dirce (Lisa Chapped), Iolaus' "lawyer," and listens as his friend relates the tale of his unlucky encounter with Autolycus. Dirce explains that Autolycus is a former carnival escape artist, whom the peasants have dubbed "the king of thieves. " Certain that Iolaus is telling the truth, Dirce
 sets out to find loopholes in the law to stall Iolaus' execution, while Hercules vows to bring Autolycus to justice. 
Hercules' pursuit of the clever and cunning "king of
 thieves" leads him to an abandoned castle, where he
 and Autolycus confront each other. While fighting in the
 dilapidated old throne room,the floor caves in, plunging them into a dungeon. Numerous obstacles and dangers, including a horrifying man-eating serpent, conspire to block their escape from the twisted corridors and chambers of the old fortress.
Hercules repeatedly ties the wrists of his "prisoner" along the way, but the amazing Autolycus breaks free of his bonds every time. Alternately helping and trying to outwit each other, the two flee the jaws of the evil serpent-monster and are finally able to get away. 
Meanwhile Iolaus is being subjected to the dreaded
  Erebus Test, an ancient and barbaric test of innocence
 requested by Dirce to delay her client's execution. First,
 Iolaus' feet are tied to an enormous stone and he is
 thrown into the pond for "dunking" to see if he canfloat. Next, he must undergo "pressing" by enduring the weight of a door piled high with boulders, braced across his shoulders, without
 letting any stones fall. Finally, he must share a pit with a
 wild boar for three hours without losing a drop of blood.
 Though Iolaus miraculously survives all three trials, his
 release is thwarted at the last moment when he pricks
 his finger on the wooden lid of the pit and it starts to
  bleed. 
 Hercules carries a badly injured Autolycus back to
 Scyros just as Iolaus' head is being placed on the execution
 block. Autolycus produces the stolen scepter stone and, after
 confessing to the crime, collapses. As a nearly hysterical
 Dirce pleads with her father for Iolaus' release, the
 guillotine rope snaps and Hercules rushes in to catch the
 blade inches above his friend's neck. The diversion gives
 the incredibly wily Autolycus just the time he needs to
 effect an astonishing escape.