Inspector Clouseau, played by Peter Sellers, has been called in by the king of Lugash (a fictional country) in order to find a diamond that has been stolen and has been known as the “Pink Panther.” A white glove with the initial “P” in pink is left behind at the scene of the crime. Clouseau, who had been demoted from his capacity as private investigator, is reinstated by demand of the French government and Chief Inspector Charles Dreyfus, played by Herbert Lom, asks Clouseau to assist the police in finding the thief. In the eyes of Inspector Clouseau, the thief is believed to be “the notorious Phantom," the famous Sir Charles, played by Christopher Plummer.
Sir Charles, who thinks he’s been framed, goes in person to Lugash in order to clear his name. On the other hand, Clousou follows Lady Claudine, played by Cathering Schell. She’s the wife of Sir Charles and leaves “Lytton Manor” in Nice, France and goes to Gstaad, a glamorous small town in Switzerland and Clouseau follows her there.