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The plot revolves around a largely psychological battle between Batman and his longtime foe the Joker, who has escaped from Arkham Asylum. The Joker intends to drive Gotham City Police Commissioner James Gordon insane to prove that the most upstanding citizen is capable of going mad after having "one bad day". Along the way, the Joker has flashbacks to his early life, gradually explaining his possible origin.
The man who will become the Joker is an unnamed engineer who quits his job at a chemical company to become a stand-up comedian, only to fail miserably. Desperate to support his pregnant wife, Jeannie, he agrees to guide two criminals into the plant for a robbery. During the planning, the police inform him that his wife has died in a household accident involving an electric baby bottle heater. Grief-stricken, the engineer tries to withdraw from the plan, but the criminals strong-arm him into keeping his commitment to them.
At the plant, the criminals make him don a special mask to become the infamous Red Hood. Unknown to the engineer, this disguise is simply the criminals' scheme to implicate any accomplice as the mastermind to divert attention from themselves. Once inside, they almost immediately blunder into security personnel, and a violent shootout and chase ensues. The criminals are gunned down and the engineer finds himself confronted by Batman, who is investigating the disturbance.
Panicked, the engineer deliberately jumps into the ...