In San Antonio, Texas, preteen Davey Osborne and his adolescent friend Kim Gardener, with the cooperation of their software engineer friend Morris, immerse themselves into the world of Cloak & Dagger, a video game, they pretending to be the lead characters in the game, American super spy Jack Flack and his trusty sidekick Lady Ace. Davey takes the role playing a bit more seriously, where in real life he truly does believe he is being guided by Jack. He does so to overcome what he sees as his own recently widowed father, Air Force Staff Sergeant Hal Osborne, not being there for him, while in reality Hal is trying to manage their home life as best he can under their new circumstances. Davey even sees Jack in the image of his father. Hal, who is aware of Davey's obsession with Jack Flack, also sees it as a coping mechanism for his grief. In the process of one of Davey and Kim's mock secret missions, Davey witnesses a murder of who says in his dying breaths is an FBI agent who hands Davey a cartridge tape of a Cloak & Dagger game. The authorities believe Davey is just a boy with an overactive imagination crying wolf when the dead body is not to be found where Davey says, while Hal again believes it is Davey playing too many video games. But Davey knows the killers know he can identify them. So Davey and Kim have to elude the murderers while figuring out why they killed the agent, which has something to do with deciphering the mystery of the game cassette. Davey, as usual looks to Jack for guidance, but will a non-existent spy help them for real when it comes to their own life or death?