When she saw his photograph on the back cover of a novel, Kathleen still couldn't believe it was the same man. Surely this was just another example of her dreams coming back to haunt her. But her friend Janelle felt differently, and decided that the best thing would be for Kathleen and The Dream Lover to meet. When Kathleen begins to write a novel that sounds suspiciously like something Charles Sutcliffe himself would write, Janelle sends part of it to Sutcliffe's agent, Malcolm Lockheart -- without telling her friend what she is doing.

Charles Sutcliffe had a successful career as a popular novelist, and a side-line nobody knew about -- as a courier and sometime undercover operative for the C.I.A. His contact agent was Malcolm Lockheart's secretary Betty, but not even Malcolm himself knew that Betty's job with him was simply a cover to expose a corporation called GERONCO.

His new novel about government agent Sam Parker involves a woman Sam eventually marries -- a woman Charles saw in his dreams. A woman named Kathleen.

When Malcolm receives the manuscript of Kathleen's novel, he shows it to Charles, who recognizes his own nearly-finished book. The story and characters are so similar he knows it can't be a coincidence; except that in Kathleen's book, her hero isn't a government agent, but a best-selling novelist. Charles is now convinced that he and Kathleen are having the same dreams, and decides he must meet her.

When Charles and Malcolm arrive in Los Angeles, Charles discovers that Malcolm has scheduled him to speak at U.C.L.A. He is in a cold sweat wondering if Kathleen will be at his speech. She is, and her friend Janelle is hosting a party for Charles at her house, after the event.

Kathleen and Charles have barely met when Charles is kidnapped. Kathleen and Malcom's secretary Betty, an undercover C.I.A. operative, set out to discover his whereabouts through Kathleen's dreams. By the time the lovers are reunited, Charles has made friends with his kidnappers, a couple of muscle-for-hire guys who want out of their contract, and Malcolm, Charles' agent, has proposed marriage to his secretary.

Kathleen helps Betty take down a corrupt corporation through her dreams, and she is reunited with Charles when his captors attempt to send him out of the country. By the end of the film they are all relaxing at Malcom's house on Long Island, and the bad guys are behind bars -- but Malcolm can't resist one peak at the computer disk that caused all the problems.