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The real James Bond is retired, while another man continues le legend under his name. But as many secret agents of all countries are eliminated by SMERSH, Bond is coerced into coming out of retirement by the explosion of his mansion, in which M is killed. Bond returns M's toupee to his widow in Scotland. She really is Mimi, a SMERSH agent tasked with destroying Bond's celibate image, which fails. Bond then goes back to London and becomes the new M, where he learns the agents are eliminated because they cannot resist sex. Bond orders all remaining agents to be called James Bond to confuse SMERSH. He then hires millionaire and former agent Vesper Lynd to hire baccarat expert Evelyn Tremble. The goal is to prevent SMERSH agent Le Chiffre from recovering the money he embezzled from his organization by winning at the Casino Royale. Based on a tip from Mimi, Bond sends his daughter Mata to West Berlin to infiltrate a SMERSH training centre. There she foils Le Chiffre's other money-making scheme, selling compromising photographs of world military leaders. Tremble and Lynd then arrives at Casino Royale and foil an attempt to disable Tremble. The latter then observes Le Chiffre and discovers he cheats using infrared glasses. Lynd steals the glasses and Tremble wins the game. Le Chiffre then captures and tortures Tremble with hallucinogens. The latter is saved but then killed by Lynd. Le Chiffre is then eliminated by SMERSH. In London, Mata is kidnapped by SMERSH in a giant flying saucer. Bond and Moneypenny travel to Casino Royale to rescue her and discover there an underground lair belonging to the evil Dr. Noah, in reality Jimmy Bond, James' nephew. Jimmy's plan is to release a bacteriological agent that will make all women beautiful and kill all men taller than 4"6', leaving him as the big man who gets all the girls. Another, female James Bond whom Jimmy had kidnapped earlier poisoned Jimmy with a miniature atom bomb. Bond, Moneypenny and Mata escape from the lair back to the casino where Bond establishes that Lynd is a double agent. The casino is overrun by secret agents and a battle ensues, with American and French support, adding to the chaos. Jimmy finally explodes, destroying the Casino and killing all people in it.

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John Kruger's job at the US Marshals is to give witnesses a new identity to protect them from criminals against which they are going to testify. He therefore erases the past life of Lee Cullen who alerted the FBI that her company Cyrez is selling secret military weapons to other countries. But Kruger learns that several of his protected witnesses have been kidnapped or killed, indicating there is a mole in his service. With his old mentor DeGuerin and a few colleagues, they attempt to rescue a kidnapped witness, who is murdered by one of the Marshals. During the flight back, the three rogue Marshals try to kill Kruger, who escapes by jumping with a parachute. Having signalled Cullen that she is not safe anymore, they meet at the planned rendezvous point in the New York zoo. They are attacked by DeGuerin's men but manage to escape. Kruger and Cullen return to Cyrez to decrypt a data disc Cullen had copied with the help of the FBI. They discover that a shipment of weapons is for the Russian mafia is going to leave the Baltimore docks. Cullen is then kidnapped by DeGuerin who takes her aboard the ship. Kruger gets help from Johnny, a witness he recently “erased”, who contacts his cousin, a mobster at the docks. They plan an assault on the dock and manage to free Cullen. After a fight, Kruger exposes DeGuerin's scheme to their boss. Weeks later, the rogue Marshals are indicted but there is not enough evidence for a conviction. Kruger fakes his and Cullen's death. After the rogue Marshals have been liberated, Kruger poses as their limousine driver, then leaves the car on a railway track where it is hit by an oncoming train.