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New rules enforced by the Lady Mayoress mean that sex, weight, height and intelligence need no longer be a factor for joining the Police Force. This opens the floodgates for all and sundry to enter the Police Academy, much to the chagrin of the instructors. Not everyone is there through choice, though. Social misfit Mahoney has been forced to sign up as the only alternative to a jail sentence and it doesn't take long before he falls foul of the boorish Lieutenant Harris. But before long, Mahoney realises that he is enjoying being a police cadet and decides he wants to stay... while Harris decides he wants Mahoney out!

As a crime wave sweeps through a city that doesn't have enough police officers, the mayor decides that part of the problem may stem from overly restrictive qualifications for police officers, so she opens the door of the city's Police Academy to anyone who wants to join. Chief Henry Hurst does not agree with the mayor's decision. Soon, the academy is overrun with misfits, including parking lot attendant Carey Mahoney, who has been arrested before. Captain Reed, a longtime friend of Mahoney's father, gives Mahoney the choice of taking the 14 week course and joining the force, or going to jail. Mahoney chooses the academy. Karen Thompson is an attractive cadet whom Mahoney has his eyes on. Florist Moses Hightower is a mountain of a man who likes to tend flowers. And Larvell Jones has the ability to imitate the sound of virtually anything. Also in the academy are guy-magnet Debbie Callahan, squeaky voiced Laverne Hooks, gun loving Eugene Tackleberry, and Leslie Barbara (Donovan Scott), a cadet who has been picked on one too many times. Befuddled Commandant Eric Lassard and his lackey, Lieutenant Thaddeus Harris, are not exactly thrilled with the new recruits. As Lassard and Harris try to wash their hands of the recruits, Mahoney and his classmates become all the more determined to make good, even when one of the recruits accidentally starts a chain reaction of fights that lead to a riot in the city.

The city is in need of more police officers, so the mayor decides to alter the requirements for acceptance into the Police Academy. Among the new cadets is Moses Hightower, a gentle giant who was a florist. Leslie Barbara, who is tired of being picked on. Laverne Hooks, a mousy, meek voice person. Karen Thompson, a socialite, who hopes that it'll allow her the opportunity to meet some unusual people. Eugene Tackleberry, a guy who likes to discharge his weapon. Larvell Jones, a human sound effects machine, who was met at the police station by Carey Mahoney, a guy who is basically a good guy but has a little trouble with authority figures, a retaliates by committing outrageous acts that get him arrested. He is fortunate that police Captain Reed is a good friend of his father and has been bailing him out but now Reed thinks that jail is what Mahoney needs but Mahoney disagrees. Reed suggest that Mahoney join the police academy but must complete the 14 week course or else he will be sent to jail. So Mahoney brings Jones with him hoping that he can help Mahoney get thrown out. It also seems that the police chief doesn't agree with the mayor so he instructs Commandant Lassard and Lieutenant Harris to encourage the bad apples to quit.