Plot
After an encounter with knife-throwing twin assassins Mischka and Grishka in East Berlin, mortally wounded British agent 009, dressed as a circus clown and carrying a fake Fabergé egg, crashes into the British ambassador's residence and dies. MI6 suspects Soviet involvement and, after the real Fabergé egg is to be auctioned in London, sends James Bond to identify the seller.
At the auction, Bond switches the fake egg for the real one and engages in a bidding war with exiled Afghan prince Kamal Khan, forcing Khan to pay £500,000 for the fake egg. Bond follows Khan to his palace in India. Bond defeats Khan in a game of backgammon using Khan's loaded dice. Bond and his MI6 contact, Vijay, escape Khan's bodyguard Gobinda in a taxi chase through a marketplace. Later, Khan's associate Magda seduces Bond. Bond allows Magda to steal the real Fabergé egg, which is fitted with Q's listening and tracking device. Gobinda knocks Bond unconscious and takes him to Khan's palace. After Bond escapes, he listens in on the bug and discovers that Khan works with Orlov, a corrupt Soviet general seeking to defy his superiors and expand Soviet domination to Western Europe. Orlov has been supplying Khan with priceless Soviet treasures stolen from the Kremlin, replacing them with fakes while Khan has been smuggling the real objects into the West using a circus troupe belonging to a mysterious woman named Octopussy.
Bond infiltrates a floating palace in Udaipur and meets Octopussy, a businesswoman, smuggler and Khan's associate. She also leads the Octopus cult, which Magda is a member of. Octopussy has a personal connection with Bond: her father was the late Major Dexter-Smythe, whom Bond arrested for treason. Octopussy thanks Bond for allowing the Major to commit suicide rather than face trial, and invites Bond to be her guest. Khan's assassins break into the palace to kill Bond, but Bond and Octopussy defeat them. Bond learns from Q that the assassins have killed Vijay.
Orlov is planning to meet Khan in Karl-Marx-Stadt, East Germany, where the circus is scheduled to perform, while back in Moscow, General Gogol begins to pursue Orlov when the fake jewels are discovered. Travelling to East Germany, Bond infiltrates the circus and discovers that Orlov has replaced the jewels with a nuclear warhead, primed to explode during the circus performance at a United States Air Force base in West Germany. The explosion would cause Europe to seek unilateral disarmament in the belief that the bomb belonged to the US and was detonated at the airbase accidentally, which would leave the unprotected borders open to a Soviet invasion.
Bond drives Orlov's car along the railway tracks and boards the circus train. Orlov gives chase, but is killed by border guards when he tries to catch the train as it crosses the border. Bond kills Mischka and Grischka to avenge the murder of 009, and after falling from the train, hitch-hikes a lift from a passing motorist to reach the airbase, eventually stealing a car from a nearby town to complete his journey. Bond penetrates the base and disguises himself as a clown to evade the West German police. He convinces Octopussy that Khan has betrayed her, and realizing that she has been tricked, she assists Bond in deactivating the warhead.
With the plan stopped, Khan has returned to his palace and prepares to flee. Bond and Octopussy also return separately to India. Bond arrives at Khan's palace just as Octopussy and her troops launch an assault on the grounds.
Octopussy attempts to kill Khan, but is captured by Gobinda. While Octopussy's team overpowers Khan's guards, Khan and Gobinda abandon the palace, taking Octopussy as a hostage. As they attempt to escape in their plane, Bond clings to the fuselage and disables an engine and the elevator panel. Struggling with Bond, Gobinda falls to his death, and Bond and Octopussy jump off the plane onto a nearby cliff seconds before the plane crashes, killing Khan. While the Minister of Defence and Gogol discuss the return of the stolen jewels to the Kremlin, Bond recuperates with Octopussy aboard her private galley in India.