Davey Osborne is an average 11-year-old boy with an overactive imagination. He spends his days playing video games and pretending to be a spy with his imaginary father-figure, Jack Flack - a substitute for his real father, who is struggling with the recent death of Davey's mother. However, fantasy becomes reality for Davey after he witnesses the murder of an FBI agent, who in his dying breath, gives Davey a mysterious video game cartridge called Cloak & Dagger, which in actuality contains top-secret government information. With the help of his younger friend Kim, the tech savvy Morris, and even a little help from his fictional secret agent mentor, Davey must stay one step ahead of pursuers as he tries to survive a real-life game of espionage in the streets of San Antonio, Texas.