Dooley and his K-9 partner Jerry Lee are ready to retire from the police force. But before he can retire with his pension he must work as a P.I. to find a set of high tech computer chips. 

San Diego police detective Mike Dooley has retired from the force, but on the way home from his retirement party, he and his police dog, Jerry Lee, come across a robbery at an electronics lab, in which four valuable prototype computer chips are stolen. When Dooley and Jerry Lee try to stop the robbery, they are slowed down by the FBI, who draw their guns on Dooley. In chasing the thieves, Jerry Lee has swallowed one of the chips, and the other three won't work without it. In the eyes of the FBI, Dooley becomes a suspect just because he was on the scene at the time of the heist, and his pension is frozen until the case is solved. Since Dooley's pension is frozen, he decides to breed Jerry Lee for some quick cash to start a private investigation business. Unfortunately, Jerry Lee's a big slob who farts a lot, and so he has trouble with the higher-brow dog fanciers. But after a successful night of breeding, Dooley gets paid, and winds up with a crush on Catherine Coleman, the female dog's owner. Jerry Lee gets "morning after" regrets. After a trip to the vet, Jerry Lee passes the computer chip. Dooley cleans the chip and stuffs the chip into the locket on Jerry Lee's dog collar. Dooley gets his P.I. license and advertises his services in the paper. The first person to call him is Laura Fields, who wants Dooley to help her find her lost fiancé. Little do Dooley and Jerry Lee know that all roads in this investigation will lead back to the heist. Dooley has to deal with the FBI, which is tailing him to see how he was involved with the theft in the first place. He also has to deal with his ex-captain and his former colleagues, who all seem to think he's crazy. As it turns out, Laura is the mastermind behind the theft, and she hired Dooley so she can get her hands on the chip that Jerry Lee has. Can Dooley and Jerry Lee stop Laura before she can get her hands on the chip?