Walter Hollander, a caterer, is on vacation with his wife Marion and daughter Susan. While flying to Athens, their plane is hijacked to Vulgaria, behind the Iron Curtain. While waiting for the plane to be cleared to take off again, Marion insists they go outside and take a few pictures. Unfortunately they are in a restricted area so the secret police suspect them of being spies. Inspector Krojak sends a squad of soldiers with machine guns to arrest them, and the Hollanders flee to the car of the American ambassador which is parked nearby.
The Hollanders take refuge in the U.S. Embassy nearby. The ambassador is away, leaving only his inept son Axel Magee to grant the Hollanders political asylum. Picketers protest outside the embassy as everyone tries to figure a way out. Complicating matters further is that Susan has fallen in love with Axel.
Marion busies herself by scrupulously cleaning the embassy as if it were her own home. Walter can make long distance phone calls,
but they bring only bad news...including that his catering business has become involved in a food poisoning scandal.
Axel hopes that an influential Arab Sheik might help out. But when the Sultan shows signs of wanting to add daughter Susan to his harem; Walter explodes and throws the Sultan out.
Axel finally gets the idea of throwing a fancy party at the Embassy, and to have the Hollander's leave in disguise among the guests. Father Drobney, an eccentric rabbi also seeking asylum, gets them through border checkpoints thanks to his knowledge of the local language.
Daughter Susan has remained behind to marry Axel and remain in the safety of the embassy while Walter, Marion, and Drobney escape Vulgaria in a rickety biplane.