Follow-on from the 1986 film 'FX - Murder by Illusion' in which Tyler (Bryan Brown) is now semi-retired. However, he is talked out of the quiet life after five years and into taking part in a police-sting operation by his girlfriend's ex-husband. When the latter is murdered, Tyler investigates, with the help of his old police partner (Brian Dennehy) and soon they are trapped in a dangerous web of murder, treachery and deceit.

In the first FX movie, special effects expert Rollie Taylor (Bryan Brown) is hired to fake a gangster's murder, but it soon becomes clear that someone wants Rollie dead. He has to use all his special effects skills to stay alive. The sequel has the special effects man called out of retirement to take part in a police investigation.