The game takes place immediately after its predecessor, James Pond. Although Acme Oil Co. has been destroyed by James Pond, Pond's arch enemy Dr Maybe survived and has retreated to the North Pole where he has taken over Santa's workshop. Dr Maybe is holding Santa's workers hostage (in most versions of the game they are penguins, in some they are elves), and has turned many of Santa's helpers into his own twisted and dangerous assistants. James Pond is recruited to infiltrate Santa's grotto, free the captive penguins, retrieve the stolen toys for the children of the world, and defeat Dr Maybe once and for all. This time, however, due to the greater risks involved in this mission, Pond is given a robotic suit and the code name "RoboCod" (a pun on RoboCop). This suit gives Pond superhuman strength and agility as well as enabling him to stretch his midsection almost indefinitely and reach otherwise impossibly high areas.