Fletch and Godber go before the governor for brewing Christmas hooch but the governor has to excuse himself with the runs. His new 'trusty' redband Urwin then pulls a gun, taking Barraclough, Fletch, Godber and the governor's secretary Mrs. Jamieson - who, it is revealed, is having an affair with Barraclough - hostage, though the radio report claims that Fletch and Godber are part of the desperate trio wanting a helicopter to fly them to Mexico. After he has accidentally taken the knock-out drops Barraclough intended for Urwin, Fletch comes to and disarms his captor, talking him into giving himself up. Back in the cell Barraclough tells Fletch that the matter of the hooch will be dropped because of his heroism but Fletch now has something to hold over the screw - Mrs. Jamieson.

Oily convict Harris has stolen some pills but he drops them and they land in Fletch's tea. There's big trouble from Grouty if the pills aren't replaced and, though Barraclough can provide some, they're the wrong size. Eventually replacements are found but in the mean time Fletch ends up swallowing the ones in his tea and learning that they are to cure the governor's dog's bad breath.

Fletch and Godber get a new cell-mate and Fletch is shocked to find it is elderly Judge Rawley, the man who handed him his five year sentence, now convicted of corruption. Though disappointed that Rawley has no dirt to dish on the governor, a friend, Fletch is protective towards him when the other prisoners decry Rawley's privileges. He also tells Rawley that if he had known he was bent he would have offered him a bribe.

When Rawley's watch is stolen the prime suspect is oily toe-rag Harris and so a kangaroo court is set up, presided over by the judge, with Fletch prosecuting and Warren acting as the defending counsel. Without any evidence, Harris is found not guilty, though he then admits to having the watch and relinquishes it. Rawley's appeal against conviction has been successful and he leaves the prison, giving Fletch the watch as a present for being his protector. Unfortunately Harris has taken its workings out.

Blanco is due to be granted his parole, but when Fletch hears Blanco claim that he was innocent of his wife's murder all along and that her lover killed her, he believes the old man should have a free pardon instead and organizes a petition, forging Mr. Barraclough's signature to add to the list. Eventually, after threats of hunger strikes, the free pardon is granted. However, when Fletch asks what happened to the wife's lover, Blanco replies that he killed him years ago.

Godber is doing his history O Level exam and Fletch means to help him pass by getting Warren to steal the test paper for him, which he does. However, Godber prefers to pass on his own merits and refuses to accept it. Warren spies on him and sees him peep at the paper so that, when Godber finishes the exam and claims to be happy that pass or fail, it will have been all his own work, his two friends are outraged. Godber admits to looking at the paper but denies it helped him, explaining that Warren, who is dyslexic, brought him the biology paper.

Godber is due to see the parole board in a few days where he is almost certain to get a parole. However, the prison troublemaker, a brute named Jarvis, is looking to start a fight with Godber and Godber seems keen to oblige him.