Catwoman has captured Green Arrow and Batman as they try to stop her stealing a pair of golden cat statutes. She lowers them into a pit filled with killer cats and Batman tries to stop her, appealing to her romantically. Green Arrow is disgusted to realize that Batman is flirting with the villainess, who is returning the Caped Crusader's attention. Batman finally cuts himself free and takes on Catwoman while Green Arrow goes after her henchmen. Catwoman spars with Batman and offers him a partnership, but he captures her with her own whip while Green Arrow takes out the henchmen. However, Catwoman manages to slip free and Batman seemingly lets her go. Green Arrow accuses his ally of being distracted, and Batman says he knows how to find her. He doesn't reveal that Catwoman slipped him a note with her phone number.
Batman finds the lair of the Psycho Pirate and avoids the villain's deathtraps. He confronts the villain only to discover that Psycho Pirate has captured Black Lightning, Katana, and Metamorpho, and has placed them in electronic cerebral chambers. Batman realizes that the villain is feeding on their rage and anger. However, the Psycho Pirate warns that if Batman tries to free them from outside of his virtual reality, their brains will be fried. Batman plugs himself into another chamber and goes in, despite the fact that if he dies in the virtual reality, he'll never wake up.
Batman enters Katana's reality first. She's in a rock garden in Japan explaining to her master, Takahiro, that she accidentally told her brother Takeo that Takahiro guards a mystic sword. Takeo arrives in battle armor to take the sword and Takahiro tells Katana to hide. Her brother cuts the ancient master down while Batman tries to convince her that it wasn't her fault. She goes back to the garden, grabs the mystic sword, and attacks her brother. She easily wins and he tells her to take her revenge. Batman tries to stop her but when she refuses to listen to him, he uses his energy sword to block her attack. Takeo continues to taunt her, saying she refuses to speak because she blurted out the secret of the sword. Batman gets through to her and persuades her that her master sacrificed his life for her and she honors his sacrifice by keeping a vow of silence. Katana drives the blade into the ground and the virtual reality disappears. The Psycho Pirate, speaking through Takeo, says that he plans to feed off of Black Lightning's rage and Katana is only incidental.
Batman and Katana go to the nearby city where Black Lighting is venting his rage on anyone doing anything that offends him, from sprinkles in coffee to people driving SUVs to carry a single bag of groceries. The Psycho Pirate tries to distract Katana while Batman goes after Black Lighting. When Katana resists the villain's taunts, the Psycho Pirate animated a children's TV dinosaur and then sends an army of them against Black Lightning. He blasts them with electricity but thanks to Batman, manages to regain his self-control. The Psycho Pirate departs and the three heroes realize that Metamorpho was the villain's target all along. They don't know how Metamorpho could be so easily enraged but see his angry form in the sky above.
Metamorpho has grown to giant size and is smashing the city apart. The Psycho Pirate is at his shoulder, reminding him that his friends despite him because he's a freak while they can walk about normally. Batman tells Black Lightning and Katana to go after their comrade and stop him without hurting him, while he deals with the Psycho Pirate. While Katana remains silent, Black Lightning tries to persuade his friend that he's the most powerful of them and the coolest. Metamorpho refuses to listen and tries to smash them, and Batman flies them to a nearby rooftop.
As the Psycho Pirate grows ever stronger thanks to the rage that he's feeding off of, Batman tells the others that he'll deal with the Psycho Pirate. He corners the villain and starts punching him, giving into his anger. Meanwhile, Katana finally speaks, convincing Metamorpho that they are all outcasts and they need him with them. Metamorpho calms down and shrinks back to normal size.
Batman frees himself of the virtual reality but before the Outsiders can escape, the Psycho Pirate electrocutes them. The villain boasts that Batman doomed the three teenagers by bringing them together. The Caped Crusader launches a furious attack but quickly realizes that he's trapped in his greatest nightmare. There's only one way he can escape: he thinks happy thoughts and then calmly punches Psycho Pirate until the villain drops. He frees the Outsiders and goes to call the authorities, while the teenagers wonder what happy thoughts that Batman might think.