After being banished by King Richard the Lionheart in a tomb for over a thousand years, the demon Prosatanos is freed and yearns to cause Hell on earth. Unfortunately for him mess with Chicago cop Frank Shatter and there's Hell to pay.
Hellbound starts very much like Star Wars with the opening scrolling text appearing slowly, while ascending into the heavens. The scrolling text tells the story of the Demon Prosatanos who was sent to Earth to unbalance the furies and doom the planet to a chaotic existence by bringing on Armageddon. The movie cuts to 1186 A.D where King Richard the Lionhearted travels to a temple and saves a baby prince from being sacrificed by Prosatanos. During the scuffle Prosatanos is impaled by a cross, and trapped in a tomb. The Priest accompanying Richard warns him the prison will not last forever and that one day he will be released. The movie then cuts to 1951 where Grave robbers have infiltrated the tomb and start stealing the artifacts that are keeping the demon in place. The demon escapes his prison and kills the two grave robbers.
While not being useless, Shatter's partner Jackson is also a host on The View.
In present day Chicago Prosatanos is looking for pieces of his mace that give him his power. After having sex with a hooker he greets a rabbi and an antiques collector who have acquired a piece of his mace. He pays the antiques collector and sends him on his way. While Prosatanos is looking at the mace he is stabbed with a holy sword by the rabbi. It doesn't work and the rabbi is brutally killed via his heart getting ripped out. The then alerted hooker is thrown out the window and right onto the car of two Chicago beat cops, Frank Shatter (played by Chuck Norris), and Calvin Jackson. Shatter runs up into the hotel room and shoots the demon but is thrown around the room and in the commotion Prosatanos escapes. The two then are yelled at by the police chief (Cherie Franklin) and told to escort the rabbi's body to Iseral. Meanwhile Prosatanos is acquiring more of the mace from various holy men.
When Shatter an Jackson get to Israel and get an un warm welcome they decide to investigate the case. They interrogate the antiques dealer who set up the deal, have run in's with child thieves, and even confront Prosatanos himself who is posing as an archeologist Christopher Neame, and his assistant Leslie (Sheree J. Wilson.) As Shatter puts the pieces together Prosatanos acquires all the pieces of the mace and kidnaps Leslie with intent to sacrifice her to bring about the end of days. Before he can complete the sacrifice however he is stopped by Shatter, and after a lengthy karate fight is impaled with his own mace and killed.
After the climax Shatter and Jackson prepare to leave for Chicago at the airport. Shatter and Leslie kiss, and Jackson gets his wallet stolen by the recurring child thief. The movie ends on a freeze frame.