Jack Russell has been kidnapped by the mystic Swami Rihva, who has thrown the Werewolf into a cage for the world to see!
Prowling outside a truck stop, the Werewolf is mistaken for a cargo hijacker by some truckers who gather to give him a pounding. The scuffle ends when the men realize the Werewolf's appearance is no costume, and they leave him to run for the forest. Elsewhere, at a carnival, the Werewolf is being viewed through a crystal ball by a Swami named Rihva, who seeks something from the man-beast. The mystic orders the diminutive lion tamer, Mige, to begin rolling up the circus, so they can move on to Los Angeles.
Weeks later, Jack Russell, his sister Lissa and their friend Buck Cowan, come across the carnival and opt to spent some time there. Jack is drawn to Rihva's tent, while his companions go off for food. Inside the swami's tent, Jack becomes entranced by the mystic's incense, and is now captive of the carnies. When the circus abruptly begins to pack up, Lissa and Buck find no trace of Jack.
Meanwhile, at a Los Angeles police station, Lt. Lou Hackett is in the midst of an investigation, that, despite his skepticism, points to the existence of a werewolf.
Two days later, the carnival sets up in another town, where the caged Jack is displayed in the freak show. As the full moon rises, the crowd watches him transform into the Werewolf. The audience is impressed, but believe the metamorphosis to be a trick; however, when a few witness the creature attack the barker, Calliope, through the bars of the cage, they become less sure. Mige cracks his whip to force the Werewolf to release Calliope, then expresses to Rihva his displeasure about the beast's presence.
After the carnival closes for the night, Mige releases the Werewolf in hopes he'll escape, but the lycanthrope instead chases the lion tamer. The strong man, Big Elmo, intervenes, along with several other carnies, but a broken pole brings the canvas down upon them all. Mige makes his way to another tent, and the Werewolf follows to find himself now trapped with Mige's four lions.