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Four hundred years ago a young boy was washed ashore on an island called Bengalla. He was the last survivor of a recent pirate attack, upon standing on the island he vowed that he will destroy every pirate and crime organization that exsists on Earth. By the time he entered adulthood he went under the alias of The Phantom. The alter ego was passed down from father to son over the centuries. Leading people to believe that the Phantom is immortal and thus have created legends that surround him. By 1938, Kit Walker the 21st Phantom has discovered who killed him father, the 20th Phantom. The man he seeks is a mercenary named Quill who is hunting down one of the Skulls of Touganda, artifacts that consist of great destruction.
Meanwhile Kit's ex-girlfriend Diana Palmer travels to Bengalla to gain evidence that Quill has resorted to piracy. Upon her investigation, she ended up being captured by air-pirates lead by Sala. The Phantom receives intel on Diana's capture and goes out to rescue her from the air-pirate hdieout. After rescuing her, she safely returns to New York City, while The Phantom takes a trip to the Big Apple as well under the alias of Kit Walker. There he discovers the location of one of the three skulls of Touganda, only for the artifact to be taken by Drax, the man Quill & Sala are working for. They already have another skull in possecion and with two skulls they're able to learn about the location of the third and final skull which is located on an uncharted island of the Yellow Sea. Diana ends up being Drax's hostage while Kit goes after them as the Phantom to the island.
On the island, Drax meets a pirate named Kabai who is a long collaberator with Drax. The Phantom show ups and starts a fight with both Drax & Kabai. Kabai ends up being killed by his own pool of sharks. While Diana & Sala co-operate to defeat the subordinate villains. Drax unites all three skulls and uses the artifacts power against the Phantom. Only to be destroyed by the fourth skull which turn out to be the Phantom's ring. As the island is consumed with flames, the Phantom along with Diana & Sala escape. Upon parting the Phantom reveals to Diana his identity with the implication that she will marry him. However she leaves again for New York, with a closing narration that states that Diana will return to the Phantom's jungle.