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King Androcles of Thebes commands a ship in search of a threat to Greece, predicted by an atmospheric oracle. Hercules is part of the crew, but the strongman falls overboard in a thick fog. Washed ashore, he saves a young Ismene from Proteus, an evil, shape-shifting creature. Ismene takes Hercules to Atlantis, where he discovers that her mother, Queen Antinea, has captured Androcles. Hercules schemes to rescue him and thwart Antinea's dream of world conquest.
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Upon his return from battle in the previous film, the great warrior Hercules learns that his lover, Daianara, has lost her senses. Acording of the oracle Medea, Dianara's only hope is the Stone of Forgetfulness which lies deep in the realm of Hades. Hercules, with two companions, Theseus and Telemachus, embarks on a dangerous quest for the stone, while he is unaware that Dianara's guardian, King Lico, is the one responsible for her condition and plots to have the girl for himself as his bride upon her revival.
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Maciste is captured and forced to work as a slave in an African mine.