Tony was sent to Iraq where he was attacked and nearly killed. After he was captured and wounded by the Ten Rings,Ho Yinsen creates a miniature electric generator to protect his heart.
They begun building a weapon together,a suit of powered armor. During their escape,Yinsen sacrificed himself to allow Tony to kill the Attackers & free the Prisoners,including James "Rhodey" Rhodes. They return home to New York where Pepper Potts was waiting. Tony was greeted by Obadiah Stane. Tony creates an improve generator called an Arc Reactor.
Tony starts building a powerful suit of armor to help fix his mistakes. He begun training and practice flying. Later,The Ten Rings found Tony's old suit in the sand. Meanwhile at the Party that Stane arrange,Tony begin to suspect that he was selling weapons to the Ten Rings.
Tony puts on his Red & Yellow Armor and goes to Gulmira to attack the Ten Rings and save the villagers. Tony was pursued by F-22 Raptors. He quickly saved one of the pilots after the Raptor gets damaged. Pepper found out what Tony has been really doing.
Obadiah hears about this and came to see the Ten Rings,who gave him Tony's Old Suit. At Tony's Mansion,He was taking a shower where was joined by Pepper and they had a romantic moment.
Potts went to Stane's office where she logged into the computer and looked at his files & goals to have the Missle launched at San Francisco. She uses the memory stick and leaves. Obadiah had modified the Suit before he paralyzed Tony and steals the Arc Reactor. Tony manage to grab the spare.
Rhodey arrived at Tony's Mansion to inform of Obadiah's plan and the Agents are gonna arrest him. Tony suits up and prepares to confront Obadiah. The Agents are attacked by Obadiah,who was wearing a suit of armor. The two fought eachother. Stane held a Pepper hostage and threatened to kill her unless Tony remove his helmet. Detecting frequency in his Armor,Tony destroys the building that contains the computer,causing Stane to fall to the ground. Tony grabs Pepper in time.
The Missle has been launched. Obadiah tells Tony that there's nothing he can do and commit suicide by blasting himself with the repulsor beam. Tony fly towards to missle to intercept and successfully send it to the ocean.
At the Press Conference,People asking questions about the man in iron and the exposure of Stane. Tony confessed "I am Ironman".
Mid-Credits:
Tony returns home where he met Nick Fury,the director of S.H.I.E.L.D.,
who wants to talk to him about the Avengers Initiative.
Post-Credits:
Phil Coulson was informed by his Agents about some Green Rampaging Monster.