Plot

The Phantom, descendent of a line of African superheroes, travels to New York City to thwart a wealthy criminal genius from obtaining three magic skulls which would give him the secret to ultimate power.

Four hundred years ago, a young boy witnessed his father's death during an attack on their ship by the bloodthirsty Sengh Brotherhood. He was washed ashore on Bengalla Island where he swore to devote his life to bring down piracy, greed, cruelty and injustice. He became The Phantom, a masked avenger whose role was passed down from father to son, leading people to believe in an immortal figure called "The Ghost Who Walks". The 21st successor to the role of Bengalla's resident superhero must travel to New York City to prevent a power-hungry businessman from obtaining three magic skulls that would give him the secret to ultimate power.—Kenneth Chisholm <kchishol@execulink.com>

The Phantom, the legendary Ghost-Who-Walks, descendant of a 400 years line fighting against pirates and criminals, travels to New York City to thwart a wealthy criminal genius from obtaining three magic skulls which would give him the secret to ultimate power. However, the Phantom knows about the Fourth Skull which controls the other three, and must stop him and the ruthless pirate Kabai Sengh, the original leader of the Sengh Brotherhood. Meanwhile, he rescues his former girlfriend from college, Diana Palmer, who has mixed feelings about him since his sudden disappearance several years before, and figures out his secret and his double identity.—Carlos Mills

The character of the Phantom begins when a young boy, the last survivor of a pirate attack commanded by the ruthless Kabai Sengh (Cary-Hiroyuki Tagawa), is washed ashore on an island called Bengalla. The Touganda tribesmen find the boy on their beach and carry him to their village. The boy is presented with a ring of great significance. The boy swears to devote his life to the destruction of piracy, greed, cruelty, and injustice and in adulthood adopts the identity of "The Phantom", a masked avenger. The role of the Phantom is passed on from father to son through centuries, causing people to believe in a single, immortal figure through 400 years and accordingly to nickname him "The Ghost Who Walks" and "The Man Who Never Dies".

In 1938, Kit Walker (Billy Zane), the 21st Phantom, finds the man who killed his father the 20th Phantom (Patrick McGoohan), the mercenary Quill (James Remar), searching for one of the 'Skulls of Touganda', possession of which grants the owner a tremendous destructive power. Quill is working for one Mr. Drax. The natives of the jungle observe and men and summon the Phantom via drums. Phantom has a pet wolf named Devil, and a white horse named Hero. Phantom finds that Quill lured the 20th Phantom with a promise to locate the Sengh brotherhood and took him to an isolated spot in the jungle and stabbed him in the back. Quill has the gun belt of the 20th Phantom as a trophy.

The Phantom seizes Quill's men and saves the native kidnapped as their guide; but Quill retrieves the Skull and returns to the United States of America.

The jungle falls under British colonial rule, and is protected by Captain Philip Horton (Robert Coleby) of the Jungle Patrol. Guran (Radmar Agana Jao) is Phantom's loyal servant. Phantom studies the old records to find that there are 3 skulls of Touganda, one each made of Gold, Silver and Jade. When placed together, they harness an energy 1000 times greater than any explosive force known to man.

The Touganda tribe possessed the skulls and knew how to contain their power. But they were attacked by pirates of the Sengh brotherhood. The tribe was destroyed, and the skulls were separated and lost to time. Phantom saw the tattoo mark of the Sengh brotherhood on Quill.

In New York City, Kit's ex-girlfriend Diana Palmer (Kristy Swanson) is sent by her Uncle Dave (Bill Smitrovich) to Bengalla in order to investigate claims that businessman Xander Drax (Treat Williams), Quill's boss, is resorting to piracy (he found Drax researching the Sengh symbol). Dave owns a media chain, and believes that Drax is connected to the Zephro crime family. He says that he has proof that Drax has bought the Unions, he controls the public utilities and can manipulate stock prices. Dave confides to Diana that Drax is on the quest for supernatural power, to become a dictator. Diana is to meet Captain Horton in Bengalla.

Diana is the niece of Dave (Bill Smitrovich) & Lily (Samantha Eggar), one of the richest families in New York. Diana is engaged to Jimmy Wells (Jon Tenney). En route, Diana is captured by female "air-pirates" also obeying Drax, led by the Femme Fatale Sala (Catherine Zeta-Jones). Sala forced the sea plane to land in the ocean and took Diana off the boat.

The Phantom, told of Diana's kidnapping by Capitain Horton, rescues Diana and escapes to his headquarters, the 'Skull Cave', where Diana meets with Captain Horton and is returned to New York. Phantom tells Diana that the symbol that Dave is researching belongs to the Sengh brotherhood. Diana says that the symbol is associated to Drax, who is mad after power.

The Phantom then travels to New York in civilian guise Kit to meet Diana. Diana has mixed feelings about him since his sudden disappearance several years before due to the death of his father. Kit says that he had to look after the family business. Diana's would-be suitor Jimmy Wells mentions he had seen one of the skulls in the Museum of World History, so Kit and Diana hurry there. Drax and his men capture them, steal the second Skull and unite it with the first, revealing the location of the third Skull on an uncharted island in the Andaman Sea, known as the Devil's Vortex.

Diana is taken there by Drax, Sala, and Quill, while Kit follows them as the Phantom, latching on to the pontoon of their sea plane.

On the island, Drax meets with the pirate Kabai Sengh, direct descendant of the Brotherhood's original leader, who possesses the third Skull. They agree to a partnership to bring the skulls together. Kabai says that there is a 4th skull, which controls the powers of the other 3 and without it the 3 skulls are meaningless. Both are attacked by the Phantom. Quill is killed at close quarters, and Kabai Sengh by falling into a pool of sharks. Sala has a change of heart and fights for Phantom and Diana.

Diana, Sala, and the Phantom co-operate to defeat the subordinate villains; whereupon Drax unites the three Skulls and turns them against the Phantom, only to be destroyed when the Phantom uses the skull marked on his own ring to overcome the others. As the energy causes a volcanic eruption, the Phantom narrowly escapes with Diana and Sala.

In parting from Diana thereafter, the Phantom reveals his secret and his double-identity to her, with implication that she will therefore become his bride; but she is conveyed to New York by Sala, who does not see him exposed.