The opening sequence of the game finds Larry mowing the lawn of Eve, his sexual encounter from the ending of the previous game, implying the pair have remained together. However, this is quickly revealed to be an instance of an unreliable narrator, as Eve pulls into the driveway with only the vaguest recollection of who Larry is. Realising that his affair with Eve was merely a one-night stand, a distraught Larry wanders off, winning the Lottery as well as a free vacation after stumbling into a rigged dating game show. During his preparations for the cruise ship, a microfilm falls into Larry's hands by mistake; this attracts the attention of the KGB as well as the mad scientist Dr. Nonookee (a pun on "no nookie"), who both want to recover the film.
On the cruise ship, Larry discovers that the woman who mistakenly chose him in the dating show let her mother go with Larry, so he makes preparations in order to escape her; he stops the ship and escapes on a lifeboat. Days later...
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