Following the
First World War, Lamont Cranston sets himself up as a drug kingpin and warlord in Tibet. The
Tulku, a holy man who exhibits
psychic abilities, abducts Cranston and offers him a chance to become a force for good. Cranston initially refuses and is attacked by the Tulku's
Phurba, a mystical flying dagger after Cranston tries to steal it. Ultimately, Cranston becomes the Tulku's student and develops psychic abilities of his own, including how to
hypnotize others and bend their perceptions so that he becomes invisible, save for his shadow. Cranston returns to
New York City seven years later and resumes his former life as a wealthy playboy, while secretly operating as The Shadow, a vigilante who terrorizes the city's underworld. He recruits some of those he saves from criminals to act as his agents, providing him with information and specialist knowledge. His identity is largely unknown, especially to his Uncle Wainwright, who happens to be the Police Commissioner of New York, whom he has to regularly hypnotize in order to keep the police from interfering with him. Cranston's secret identity is endangered upon meeting
Margo Lane, a socialite who is also
telepathic. Shiwan Khan, a powerful rogue protégé of the Tulku, arrives in New York inside
Genghis Khan's
sarcophagus. As Khan's last descendant, Shiwan plans to fulfill his ancestor's ambitions of world domination. He proposes an alliance to Cranston, who refuses. After acquiring a rare coin from Khan, Cranston learns that it is made of bronzium, a metal that could be used for nuclear fission, and that Margo's father Reinhardt—a scientist working on energy research for the
War Department—has become uncharacteristically reclusive and aloof. Cranston deduces that Khan has compelled Reinhardt to create an
atomic bomb. Khan hypnotizes Margo and commands her to kill The Shadow. Cranston breaks Khan's hypnotic hold on her, but she learns his secret identity. Reinhardt's assistant Farley Claymore allies with Khan to produce a working bomb, which Khan uses to hold New York to ransom. The Shadow eventually discovers Khan's location: the luxurious Hotel Monolith, a building that Khan has rendered forgotten and invisible to the city's inhabitants. Entering the hotel for a showdown with Khan, The Shadow is subdued by the Phurba before he turns it against Khan, disrupting Khan's hypnotic control over Reinhardt and the city. While Margo and Reinhardt disarm the bomb, The Shadow pursues Khan through the hotel and defeats him by
telekinetically hurling a broken shard of glass into his
frontal lobe. Khan awakens in the padded cell of a mental hospital. One of the doctors tells Khan that they were able to save his life by removing a part of his brain, nullifying Khan's psychic abilities, before walking away and revealing a ring the Shadow gives to his agents. Cranston and Margo begin a relationship and join forces to fight the criminal underworld. ==Cast==