Derek Zoolander has been the dominant male model in the industry for three years thanks to his patented "look," Blue Steel. On the night of the VH1 Fashion Awards, what should be his fourth trophy goes to an upstart model named Hansel. Adding to the insult, a story in Time magazine brands him an idiot. Derek decides to retire and seek out his roots. Meanwhile, the new prime minister of Malaysia has upset a secret coalition of fashion designers by promising to raise the minimum wage, effectively ending their supply of cheap labour in sweatshops. Sensing disaster, the covert group charges Mugatu, the current king of haute couture, to find a mindless male model to brainwash into assassinating the new world leader. Derek, rejected by his family, stumbles predictably into Mugatu's hands and the only ones who can save him are the reporter who took away his good name, his rival Hansel, and a mysterious model from the past who sheds light on the whole conspiracy. They have to work against time and Derek's ineptitude to stop him from killing on the night Mugatu reveals his newest clothing line with the Malaysian minister as his "honoured guest."