Young Danny Madigan is a big fan of Jack Slater, a larger-than-life action hero Jack Slater played by Arnold Schwarzenegger. When his best friend, Nick the projectionist, gives him a magic ticket to the new Jack Slater film, Danny is transported into Slater's world, where the good guys always win. One of Slater's enemies, Benedict the hitman, gets hold of the ticket and ends up in Danny's world, where he realises that if he can kill Schwarzenegger, Slater will be no more. Slater and Danny  travels back to stop him.

In this Schwarzenegger movie, there's a whole host of cameos. Van Damme appears for a few seconds almost at the end of the movie, when he visits the premiere of the latest "Jack Slater" movie.