Set during the Cold War, the Soviets - led by sword-wielding Irina Spalko - are in search of a crystal skull which has supernatural powers related to a mystical Lost City of Gold. After being captured and then escaping from them, Indy is coerced to head to Peru at the behest of a young man whose friend - and Indy's colleague - Professor Oxley has been captured for his knowledge of the skull's whereabouts.
Young history buff Kevin can scarcely believe it when six dwarfs emerge from his closet one night. Former employees of the Supreme Being, they've purloined a map charting all of the holes in the fabric of time and are using it to steal treasures from different historical eras. Taking Kevin with them, they variously drop in on Napoleon, Robin Hood and King Agamemnon before the Supreme Being catches up with them.