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Stiller's idea for the film originated while playing a minor role in Empire of the Sun, and he later enlisted Theroux and Cohen to help complete the script. After the film was green-lighted in 2006, filming took place in 2007 on the Hawaiian island of Kauai over thirteen weeks and was later deemed the largest film production in the island's history. The film had an extensive marketing promotion, including faux websites for the three main characters and their fictional films, airing a fictional television special, and selling the energy drink advertised in the film, "Booty Sweat".
The film received generally favorable reviews with critics approving of the film's characters, story, and faux trailers while criticizing its offensive content. The film's soundtrack and score debuted on August 5, 2008, before the film's theatrical release. In its North American opening weekend, the film earned US$26 million and retained the number one position for the first three weekends of release. The film and its cast were nominated for several awards by various groups including the Screen Actors Guild, Broadcast Film Critics Association, and the Academy of Motion Picture Arts and Sciences. The film grossed $180 million in theaters before its release on home video on November 18, 2008.
Hook-handed Vietnam veteran John "Four Leaf" Tayback's (Nick Nolte) memoir, Tropic Thunder, is being made into a film. With the exception of newcomer supporting actor Kevin Sandusky (Jay Baruchel), the cast—fading action hero Tugg Speedman (Stiller), five-time Academy Award-winning Australian method actor Kirk Lazarus (Downey, Jr.), rapper Alpha Chino (Brandon T. Jackson), and drug-addicted comedian Jeff Portnoy (Black)—behave unreasonably. Rookie director Damien Cockburn (Steve Coogan) cannot control them during filming of a large war scene and production is reported to be one month behind schedule. Cockburn is ordered by studio executive Les Grossman (Tom Cruise) to get filming back on track, or risk its cancellation.
Acting on Tayback's advice, Cockburn drops the actors into the middle of the jungle, with hidden cameras and rigged special effects explosions to film "guerrilla-style". The actors have guns that fire blanks, along with a map and scene listing that will lead to a helicopter waiting at the end of the route. Unbeknownst to the actors and production, the group have been dropped in the middle of the Golden Triangle, the home of the heroin-producing Flaming Dragon gang. Shortly after the group set off, the five actors are stunned to see Cockburn blown up by an old land mine. Speedman, believing Cockburn faked his death, persuades the others that Cockburn is alive and that they are still shooting the film. Lazarus is unconvinced, but joins them in their trek through the jungle.
When Tayback and pyrotechnics operator Cody Underwood (Danny McBride) attempt to locate the dead director, they are captured by Flaming Dragon, at which point Tayback reveals that he fabricated his memoir and that he has hands. As the actors continue through the jungle, Lazarus and Sandusky discover that Speedman is leading them in the wrong direction. The four actors, tired of walking and hoping to be rescued, leave Speedman, who goes off by himself and is captured by Flaming Dragon. Taken to their heroin factory, Speedman believes it is a POW camp from the script. The gang discovers he is the star of their favorite film, the box office bomb Simple Jack, and force him to reenact it several times a day. Meanwhile in Los Angeles, Speedman's agent Rick Peck (Matthew McConaughey) is trying to negotiate with Grossman an unfulfilled term in Speedman's contract that entitles him to a TiVo. Flaming Dragon calls the two and demands a ransom for Speedman, but Grossman instead berates the gang. Despite the threats, Grossman expresses no interest in rescuing Speedman and attempts to convince Rick about the benefits of allowing Speedman to die and collecting the insurance. Grossman also offers Rick a Gulfstream V and money in return for his cooperation.
Lazarus, Chino, Portnoy, and Sandusky discover Flaming Dragon's heroin factory. After seeing Speedman being tortured, they plan a rescue attempt based on the film's script. Lazarus impersonates a farmer towing a captured Portnoy on the back of a water buffalo, distracting the armed guards so Chino and Sandusky can locate the captives. After the gang notices inconsistencies in Lazarus' story, the actors open fire, temporarily subduing them. When the gang realize they are being guarded by actors, they gather their guns and begin firing. The four actors locate Speedman, Tayback, and Underwood, and cross a bridge rigged to explode to get to their helicopter. Speedman asks to remain behind with the gang which he considers his family, but quickly returns when Flaming Dragon fires in pursuit. Tayback detonates the bridge allowing Speedman to reach safety, but as the helicopter takes off, the gang fires an RPG at the helicopter. Rick unexpectedly stumbles out of the jungle carrying a TiVo box and throws it in the path of the RPG, saving them. The crew return to Hollywood, where footage from the hidden cameras is compiled into a feature film, Tropic Blunder, which becomes a major critical and box office hit. The film wins Speedman his first Academy Award, which Lazarus presents to him at the ceremony.
