In a near dystopian future, Detroit is on the verge of bankruptcy after failing to pay off its debts to conglomerate Omni Consumer Products (OCP). The OCP chairman intends to have the city default on its debt, then foreclose on all public property, effectively taking over its government and allowing for a radical urban redevelopment plan. To rally public opinion behind the project, OCP sparks an increase in street crime by terminating the privatized Detroit Police Department's pension plans and cutting salaries, triggering a police strike.
RoboCop remains on duty with his partner, Anne Lewis. They raid a manufacturing plant of Nuke, a new designer drug that plagues Detroit. The cartel's leader Cain and his adolescent accomplice Hob escape. RoboCop has flashbacks to his previous life as Alex Murphy, and has begun watching his wife and son outside their home. Still grieving over the death of her husband, his wife brings litigation against OCP, complaining of harassment. After he is dressed down by his handlers, RoboCop tells his wife that Murphy is dead.
OCP struggles to develop RoboCop 2, a police droid intended for mass production to replace the striking police force, which is fitted with the brains of dead police officers like the original RoboCop. However, the resurrected police officers keep committing suicide upon activation. Psychologist Dr. Juliette Faxx theorizes that Murphy's strong moral code and strict Catholic upbringing were critical in his initial success; she convinces the Chairman to let her lead the project to recover their 90-million dollar research and development investment. However, the research staff are later horrified to learn that she seeks to use death row inmates with a desire for power and immortality instead of police officers.
Cain, a drug kingpin with a messianic following who is also addicted to Nuke, fears losing his grip in the wake of the Delta City project, and uses corrupt police officer Duffy to undermine OCP and RoboCop's enforcement efforts. RoboCop tracks down Duffy and beats the location of Cain's hideout out of him. He confronts Cain's gang at an abandoned construction site, but he walks into a trap and is overwhelmed. The criminals cut apart RoboCop's body and dump the pieces in front of his precinct. Cain has Duffy vivisected for revealing their location and encourages Hob to watch.
RoboCop is repaired, but Faxx reprograms him with hundreds of confusing new directives at the insistence of the OCP Board of Directors, severely impeding his ability to perform his duties. RoboCop eventually clears these by shocking himself with a high voltage transformer and rebooting his system. Murphy motivates the striking officers to aid him in raiding Cain's hideout. As Cain tries to escape, RoboCop wounds and apprehends him. Hob escapes and takes control of Cain's drug empire. Believing she can control Cain via his Nuke addiction, Faxx selects him for the RoboCop 2 project and disconnects his life support. Surgeons place his brain in a heavily armed robotic body and reactivate him.
After failing to pay the city's debts via voluntary fundraising, the Mayor is contacted by Hob, who offers to retire the city's entire debt in exchange for a "hands off" policy towards Nuke, thereby nullifying OCP's scheme and preventing Delta City's construction. Threatened by this move, OCP sends Cain to the meeting. Cain slaughters everyone but the mayor, who escapes. RoboCop arrives to find a wounded Hob, who identifies the attacker before dying.
The chairman presents an unveiling ceremony for Cain and Delta City, their redevelopment plan. When he presents a canister of Nuke, Cain's uncontrollable addiction causes him to attack. RoboCop arrives and fights Cain, and their battle extends to the street. RoboCop recovers the Nuke canister and Lewis uses it to distract Cain. RoboCop leaps onto his back, shoots through his armor and rips out his brain, ending Cain's rampage. The Chairman and Johnson decide to scapegoat Faxx to free OCP. As Lewis complains that OCP is escaping accountability again, RoboCop insists they must be patient because "we're only human".
Peter Weller as Alex Murphy/RoboCop
Nancy Allen as Officer Anne Lewis
Belinda Bauer as Dr. Juliette Faxx
Dan O'Herlihy as "The Old Man" OCP President
Felton Perry as Donald Johnson
Tom Noonan as Cain
Willard E. Pugh as Mayor Marvin Kuzak
Gabriel Damon as Hob
Galyn Görg as Angie
Stephen Lee as Officer Duffy
Robert DoQui as Sgt. Reed
Ken Lerner as Delaney
Jeff McCarthy as Holzgang
John Doolittle as Schenk
Angie Bolling as Ellen Murphy
Brandon Smith as Flint
Thomas Rosales Jr. as Chet
Tzi Ma as Tak Akita
Wanda De Jesus as Estevez
George Cheung as Gilette
Phil Rubenstein as Poulos
Michael Medeiros as Catzo
Roger Aaron Brown as Whittaker
Mark Rolston as Stef
Gary Bullock as Doc
Linda Thompson as Mother with Baby
John Glover as Magnavolt Salesman
Mario Machado as Casey Wong
Leeza Gibbons as Jess Perkins
John Ingle as Surgeon General
Fabiana Udenio as Sunblock Woman
Barry Martin as OCP Cop
Patricia Charbonneau as Lab Tech Linda Garcia (uncredited)
Frank Miller as Frank (uncredited)