In the aftermath of the epic battle that saw him team up with The Avengers, Tony Stark is experiencing something he never has before... anxiety & panic attacks. He is haunted by his memories of seeing and fighting against things he never dreamed possible. Meanwhile, the US Government is facing a new terror threat in the form of The Mandarin (Ben Kingsley), a next level terrorist, seeking to instill fear in the American people by routinely hijacking the airwaves & broadcasting terrifying messages.
Tony finds himself tinkering away, trying to create a new Iron Man suit that can fuse to his body from great distances, but finds himself sucked into The Mandarin's game when his bodyguard Happy (Jon Favreau) is seriously injured in one of The Mandarin's attacks. Tony goads The Mandarin into coming after him, and ends up losing his home, suits & direction in an attack on his Malibu home. Tony must now get his groove back and find out what's at the heart of The Mandarin's plot, and find out if it has anything to do with an old adversary, Aldrich Killian (Guy Pearce), that has reemerged, seemingly out of nowhere.