Dave's money-making scheme of turning white-collar civilians into weekend warriors at "Sergeant Dave's Military Fantasy Camp" hits a snag when a belt-tightening Congressman pays a surprise inspection visit to Fort Bendix. When the Congressman's teenage son joins in the fantasy and takes a tank for an unscheduled test drive, Dave, John, Lt. Handy and Rusty give chase across town.

When civil war breaks out on the Caribbean island of Maricado, the troops learn that they may actually face combat, despite John's attempts to alter Fort Bendix's status in the Pentagon's computer system. Fears are put to rest when everyone is declared unfit to fight, except Eddie who seeks comfort from Chaplain Flaherty.

It's time for the annual war games against Fort Arnold, and Colonel Henchy threatens to start training the men every morning at dawn if they don't win this year. When Lana gambles away Eddie, their secret weapon, in a poker game, Dave, John and Rusty resort to desperate measures to win him back and insure their victory.

An Army recruiting trip to the local college leaves the guys in a school daze. Dave and Rusty pursue future dates rather than soldiers; Eddie signs up for a college class with a eye towards meeting co-eds; and John is hailed as the second coming when he pledges a fraternity. Back at the base, a love-struck Eddie risks a court martial when he leads a group of campus demonstrators protesting the Army's careless polluting of the Bendix swamp who chain themselves to Colonel Henchy's desk.

When Dave discovers that John has a huge trust fund just waiting to be spent, Dave launches a campaign to convince John's father that his son is ready to handle the responsibility of wealth. Meanwhile, Colonel Henchy, furious that Ft. Bendix ranks near the bottom of all bases in the U.S. in efficiency, puts Lt. Handy on the warpath to streamline operations and with the help of Eddie's new scheme to align all motion with the Earth's rotation, things certainly start moving.

Dave uses his winnings from a lucky streak to enter a poker tournament. Meanwhile Lana reports that she's being overpaid. As a result, the Army decides to promote her, which will help her with her possible romance with Rusty.