Ten years after his retirement from the government, Colonel Steve Austin must again team up with Jaime Sommers to stop a terrorist group. Complicating matters for Austin are his estranged son Michael, who struggles for his father's acceptance as he graduates from flight school, and Jaime, who must cope with her and Steve's past. When Michael is severely injured in a crash, Steve must make the same decision about fitting him with bionics that he had to make with Jaime years ago after her accident.

Days away from her wedding to Steve Austin, Jaime Sommers experiences a mysterious breakdown of her Bionic limbs. With her physical fate unknown, Jaime calls off the wedding. Her condition quickly deteriorates, and Dr. Rudy Wells races to find the cause behind the breakdown. Meanwhile, in the Bahamas, terrorist Miles Kendrick takes control of the American Embassy and threatens the launch of a nuclear missile. Steve and OSI operative Kimberly Harmon head to the Bahamas to stop Kendrick, but in the midst of the mission Steve is suddenly stricken with the same computer virus that is destroying Jaime.