When the villainous Magma attacks Stark International, an incapacitated Stark is unable to fight back. James Rhodes dons the Iron Man armor and rises to the occasion.
The story begins with James Rhodes clothing the Iron Man armor to fight against Magma, villain that is destroying the Stark Industries. He tries to awake Tony Stark, but he is too drunk, passed out. At first Jim has to learn how to manage the armor, and asks for the help of one of Tony's scientists Morley Erwin to control the armor's devices.
In another place, a strange man tells his secretary that had sent his knight to the fight to play with Magma.
James Rhodes as Iron Man uses gas tank to explode Magma, but nothing happens with the villain. Tony awakes and watches on his monitor someone using his armor and fighting Magma. He tries to take one of his old armors, but can't remember the secret code to open the safe. Outside, Jim continues to fight Magma and now a medieval knight made of iron shows up and destroys Magma's machine.
The strange man was Obadiah Stane, and he had sent his Knight to defeat Magma because he doesn't want no one to destroy his new properties, now that Stark has been already defeated. His new weapon short-circuits any kind of electric system including Iron Man armor.
Magma manages to escape his armor device without Jim noticing he enters the building, finding Tony Stark on his underwear. Before Magma could kill Stark, Rhodes shows up and defeats him with a little help of Tony, who tells him to use his gloves blast repellers.
At the end Jim Rhodes arrests Magma, using the Iron Man armor but Tony doens't want to wear it anymore, he just want to have fun. James Rhodes then officially becomes Iron Man.