One night, Snidely (Alfred Molina) sends Homer (Jack Kehler) to Dudley’s (Brendan Fraser) post to kill him with a bomb, but though the bomb goes off and destroys the post, Dudley is not inside it, for he had secretly went to Ottawa to tell the federal authorities about Snidely’s fake gold rush. However, a government official that he speaks with writes his story off as a mere rumor and tells him that Snidely must be a good guy if he is boosting Semi-Happy Valley’s economy. Dudley returns home and sees the state his post is in, and soon after, he gets paid a visit by Nell’s (Sarah Jessica Parker) father, Inspector Fenwick (Robert Prosky). He informs Dudley that, due to him leaving his post and letting it get blown up, the government has booted him out of the RCMP. Later on, things get worse for Dudley when he discovers that Snidely has won Nell’s heart.
Dudley soon befriends the prospector Kim (Eric Idle), the first person to find gold in the fake gold rush, and he trains Dudley to be a dangerous individual so he can be a more formidable adversary for Snidely. With his new attitude, Dudley sabotages one of Snidely’s gold shipments and wrecks his favorite mini-golf course. Kim then leaves Dudley, telling him that their friendship has given him the strength to go out and find the wife and family he abandoned years ago. Dudley then wins back Nell and secretly takes her away to the Carnarsie Kumquats’ homeland. Snidely tries to rally the townspeople to find and kill Dudley, but since they still have respect for Dudley, they turn on him.
After finding out Dudley’s location, Snidely launches an all-out assault with his men on Dudley, Horse, Nell, and the Kumquats, even bringing in a pair of tanks driven by him and Homer. Just as it looks like the good guys are doomed, a cavalry of RCMP officers show up. Snidely’s army retreats, and Dudley and Horse trick Snidely and Homer into destroying each other’s tanks. Snidely is arrested, but he vows to return.
Kim shows up just as Snidely is being cuffed, and with him are his long lost wife and sons. He found his wife just as she was being sworn in as Prime Minister of Canada, and it was she who called out the cavalry. Inspector Fenwick then appears and reinstates Dudley as a Mountie, and Dudley and Nell live happily ever after.
Thanks Tornado Dragon!