The story begins with Team America having saved the day yet again. When a new threat arises, in the form of a terrorist organization operating beneath San Francisco, the team goes to action again, but are easily defeated. With no way to defeat the organization, Team America calls in the superheroes, Lazerheart and The Smooch. The heroes respond to the call, and meet Team America at the ruins of their Mount Rushmore headquarters.
After the situation is explained, Team America and the superheroes head to San Francisco to battle the terrorists once again, this time, having a better advantage. Before the terrorists can be defeated once and for all, aliens invade the Earth. With no other choice, Team America joins forces with every terrorist in the world. Just as it seems that the aliens are about to be driven off for good, they unleash their monster, Galdrobb, upon the Earth.
Lazerheart and The Smooch take it on while Team America and the terrorists deal with the aliens. Team America is defeated by a group of larger aliens, but are saved just in time by the members of ISIS. Meanwhile, the members of Al-Queda battle some alien slavers. Soon, the aliens realize they're overwhelmed, and retreat to their homeworld, while leaving Galdrobb on Earth to destroy it.
Earth's forces are powerless against the creature, but Lazerheart defeats it with his heart. The world cheers Team America, the terrorist, and Lazerheart and The Smooch. Eventually, Team America and the superheroes go their seperate ways. As they go home, the world sings a combination of Lazerheart's theme song and Team America's theme song.