Plot
Axel Foley is a plainclothes Detroit police detective whose latest unauthorized sting operation goes sour when two uniformed officers intervene, resulting in a high-speed chase through the city that causes widespread damage. Axel's superior, Inspector Douglas Todd, reprimands Axel and informs him that despite his potential to be a great detective, Axel's reckless behavior will cost him his job if it continues. Todd then sends Axel home.
Axel arrives at his apartment to find it has been broken into by his childhood friend, Michael "Mikey" Tandino. Mikey had done prison time for a car theft the pair had committed in their youth, but has since landed a job as a security guard in Beverly Hills thanks to mutual friend Jenny Summers. Mikey reveals he has some German bearer bonds but does not explain how he obtained them. Returning to the apartment after going to a bar, Axel and Mikey are taken by surprise by two men, Zack and Casey, who knock Axel unconscious, confront Mikey about the bonds, and murder him.
Due to Axel's close friendship with Mikey, and another detective already being assigned to Mikey's murder, Inspector Todd forbids Axel from assisting with the case. Axel asks to go on vacation, which Todd allows, but he warns Axel that if he tries to get involved with the Tandino case, he will be fired. Under the guise of vacation, Axel travels to Beverly Hills to investigate Mikey's murder. Jenny tells Axel about Mikey's ties to Victor Maitland, owner of the art gallery she works for. Axel goes to Maitland's office to question him about Mikey, but is ejected by Maitland's bodyguards and arrested.
Axel meets Beverly Hills Police Department Lieutenant Andrew Bogomil, as well as Detective Billy Rosewood and Sergeant John Taggart. Bogomil tells Axel that he has spoken with Inspector Todd and reminds Axel of Todd's warning about investigating the Tandino murder. Bogomil then assigns Billy and Taggart to follow Axel, who humiliates them with various pratfalls, including one that disables their car's exhaust with bananas. Billy and Taggart's initial dislike of Axel changes to mutual respect when they cooperatively foil a robbery at a strip club.
Axel infiltrates one of Maitland's warehouses, where he finds evidence of drug smuggling and is arrested after a scuffle with Zack at Maitland's country club. Beverly Hills Police Chief Hubbard, who has learned of Axel's private investigation, orders him escorted out of town. Axel convinces Billy to take him and Jenny to the warehouse, where he expects another shipment to arrive. Axel and Jenny break in and discover several bags of cocaine but are discovered by Maitland, Zack, and Casey. Maitland takes Jenny and orders Axel killed before admitting to Mikey's murder. Billy rescues Axel after a brief gunfight during which he kills Casey.
To rescue Jenny, Taggart tracks Axel and Billy to Maitland's estate where they kill four of Maitland's men, including Zack. Axel kills Maitland with Bogomil's help. Bogomil fabricates an explanation for their unauthorized actions to Chief Hubbard. Realizing Inspector Todd might fire him upon his return to Detroit, Axel asks Bogomil to smooth matters over with Todd, remarking that if he gets fired in Detroit, then he might stay in Beverly Hills as a private investigator. Bogomil agrees to talk to Inspector Todd.
Taggart and Billy pay Axel's hotel bill for him and they agree to a farewell drink together.