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Holmes and Watson investigate a series of bizarre and apparently unconnected murders, and the death of a possible suspect. The trail leads to a society of hypnotists and a mysterious, glamoruos woman. The fiendish Dr Moriarty, though reported hanged in Montevideo, is belived to be involved.

Holmes is hired by Roland Carstairs to prevent the theft of the Star of Rhodesia, an enormous diamond owned by Carstairs’ mother, Lady Margaret. Believing the diamond will be stolen on a train trip from London to Edinburgh, Holmes deftly switches diamonds with Lady Margaret while in her compartment. Soon after, Roland is murdered and the fake diamond is stolen. Red herrings abound as Holmes, aided by Dr. Watson and Inspector Lestrade, discover the murderer’s hiding place and deduce that long-time foe Moriarty’s henchman Colonel Sebastian Moran is somehow involved in the crime.

Holmes and Watson are recruited in a serpentine fashion to escort the heir to a European throne back to his native country following his father’s assassination. Because the prince has been educated in Great Britain, Holmes persuades him to masquerade as Watson’s nephew Nicolas on a ocean liner bound for Algiers. Unfortunately the ship is filled with red herrings as well as real assassins, and Holmes is challenged to outwit them all and deliver his charge to his destination. Among the suspects are a knife-throwing circus performer, two shadowy archaeologists, a hulking deaf mute, an enigmatic ship’s steward, a chanteuse with a mysterious song case, and a gun-toting British dowager.