Two American nightclub owners from New York City, Travis (John Travolta) and Wendell (Arye Gross) are drugged and kidnapped while on their way to opening a nightclub in rural Nebraska. The KGB spy Cameron Smith (Charles Martin Smith) takes them to the Soviet Union, as "experts" on the "American lifestyle" with the intention of teaching KGB spies to be like Americans. And under the influence of drugs they think they have arrived in "Nebraska" to open the nightclub. Travis and Wendell are brought to the phony town of "Indian Springs", which is populated by Russians who speak perfect American English and act like Americans. KGB spies go there to study "American people" and "American culture", but is stuck in the 1950s. The KGB spy Smith is in charge of the "typical American town" built for espionage-training purposes and hopes that his fellow spies will learn real American culture. But things get out of control when Travis and Wendell introduce their fellow "American" neighbors current pop culture, turn a bar into a rock music club and teach the townsfolk to dance. Both also flirt with local women. 