The Prime Minister of Malaysia (Woodrow Asai) vows to raise sub-standard minimum wages across the country and end child labor once and for all. The bosses of all the major fashion houses have all their inventory tied up in Malaysia and other Southeast Asian countries. They believe that the changes in Malaysia will soon spread to other countries and the fashion houses will be out of business in less than a year. The Malaysian PM is arriving in New York in 14 days and Mugatu (a fashion designer) is tasked with assassinating him. Mugatu it told to invite the PM to fashion week as a guest of honor and assassinate him there. They need a beautiful, but dim-witted assassin who can be manipulated easily. The dim-witted but good-nature Derek Zoolander (Ben Stiller) is ousted as the top male fashion model by the rising star, Hansel (Owen Wilson). Derek was competing for his 4th straight Male Model of the Year award and Hansel is a rookie, who is very casual and informal about the fashion industry and doesn't take it too seriously. The award is announced to Hansel, and yet Derek gets up goes to the podium, accepts the award and even starts making a speech, embarrassing himself. Meanwhile, fashion mogul Jacobim Mugatu (Will Ferrell), and model agent Maury Ballstein (Jerry Stiller) are working on finding a model who can be brainwashed into becoming an assassin. They see Derek on stage and find him to be the perfect candidate for their mission. Derek's reputation is further tarnished by a critical article from journalist Matilda Jeffries (Christine Taylor). Derek has his signature looks like Blue Steel, Ferrari and Le Tigre. He has been working on his look called Magnum for the last 8 or 9 years. Derek is really mad at Matilda, who says that it was her editor who changed the story that made Derek look stupid. Derek's three flat mates and colleagues Meekus (Alexander Skarsgard), Rufus and Brint are killed in a "freak gasoline-fight accident". The friends had gone out to take Derek's mind away from his loss, and ended up at a gas station where they started a gasoline fight instead of a water fight. Derek had stepped away when he saw a man throw a magazine with his photo on the cover in a trash can, and hence survived. Maury reaches out to Derek and presents an offer from Mugatu to work with him in his new fashion show. Mugatu has never signed Derek for an assignment before. Derek announces his retirement from modeling and attempts to reconnect with his father Larry (Jon Voight) and brothers Scrappy (Judah Friedlander) & Luke (Vince Vaughn) by helping in the coal mines in Southern New Jersey. Derek's delicate methods make him an impractical miner, and his family rejects him. Derek complained of getting a black lung after spending just 1 day in the mine. Derek returns to New York and accepts Mugatu's offer to star in the next runway show. Mugatu takes Derek to his headquarters, masked as a day spa, where Derek is conditioned to attempt the assassination when the song "Relax" by Frankie Goes to Hollywood is played. Matilda, who felt partially responsible for Derek's retirement, is suspicious of Mugatu's offer, and tipped off by an anonymous caller, tries to enter the spa, but is thrown out. Matilda tries to voice her concerns to Derek once he leaves, but he ignores her. Matilda follows Derek to a Pre-runway show, where he loses to Hansel in a "walk-off" judged by David Bowie. Matilda receives another anonymous call to meet at a nearby cemetery. Matilda along with Derek find the anonymous caller is hand model J.P. Prewett (David Duchovny), who explains that the fashion industry has been behind several political assassinations including Abraham Lincoln and John F. Kennedy, and the brainwashed models are soon killed after they have completed their task. Before J.P. can explain more, Katinka (Milla Jovovich), Mugatu's chief Henchwoman, and her aides attack the group, forcing Derek and Matilda to flee. They decide to go to Hansel's home, the last place they believe Mugatu will think to look, and Derek and Hansel resolve their differences while partaking of Hansel's collection of narcotics and participating in groups sex with Matilda and others. While recovering, Derek also finds that he is falling in love with Matilda. Derek and Hansel break into Maury's offices to find evidence of the assassination plot but cannot operate his computer to find them. Derek leaves for the show, Hansel following later with the computer in hand, believing that, as told to him by Matilda "the files are inside the computer". Matilda tries to intercept Derek before the show, but Katinka thwarts her attempt. As Derek takes the runway, Mugatu's disc jockey starts playing "Relax", activating Derek's mental programming. Before Derek can reach the Prime Minister, Hansel breaks into the DJ booth, and switches the music to Herbie Hancock's "Rockit", breaking Derek's conditioning. Hansel and the DJ have a brief fight before Hansel eventually unplugs the system, moments before Derek was about to snap the Prime Minister's neck. Mugatu attempts to cover up the incident, but Hansel offers Maury's computer as evidence, smashing it to the ground which he believes would release the incriminating files. Though the evidence is destroyed, Maury steps forward and reveals he had backed up the files, and offers to turn over the evidence of the assassination plot after years of guilt for his complicity in the conspiracy. Mugatu attempts to kill the Prime Minister himself, but Derek stops him by unleashing his ultimate model look, "Magnum", that stuns everyone. Mugatu is arrested, and Derek is thanked by the Prime Minister. In Derek's rural hometown, his father Larry watches the event on television, and proudly acknowledges Derek as his son. A few years later, Derek, Hansel, and Maury start "The Derek Zoolander Center for Kids Who Can't Read Good and Who Wanna Learn to Do Other Stuff Good Too". Derek and Matilda have a son named Derek Zoolander Jr., who has already developed his first modeling look.
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