Goliath and his clan of gargoyles defend a medieval castle in 994 A.D Scotland; Goliath is tricked by the humans and discovers his entire clan has been destroyed.

The remaining gargoyles are cursed to sleep for 1000 years; David Xanatos buys the castle, moves the castle to New York City, the gargoyles are awakened and the castle is attacked.

Goliath rescues Elisa; Xanatos asks the gargoyles to retrieve his stolen property; the other gargoyles explore their new home.

Elisa and Goliath escape a second commando attack; Xanatos reunites the gargoyles with Demona; Goliath and the gargoyles split up to recover Xanatos' stolen computer disks.

The gargoyles recover the missing disks and hand them over to Xanatos; the attacks were staged by Xanatos to complete his Steel Clan, a unit of gargoyle robots.

With the help of his assistant Owen Burnett, Xanatos decides to test the gargoyles against the Pack, a group of television heroes who are also highly trained mercenaries.