Indy flies to Nepal (followed by a Nazi agent, Toht (Ronald Lacey)) to confront Marion Ravenwood, who runs a restaurant and bar (and who can outdrink anyone) because he needs the headpiece to the Staff of Ra, whose crystals will allow him to determine the exact location of the Ark. Marion, still bitter over their breakup, nonetheless accepts when Indy offers her $3,000 and the promise of more when they return stateside. She is cryptic about the headpiece, and after Indy leaves she ponders it as she wears it around her neck.

Toht and several Sherpa heavies enter the bar and hold Marion hostage, with Toht ready to torture her for the headpiece. Indy returns and a firefight erupts during which the fireplace is dislodged and the building begins burning down. Toht finds the headpiece but when he grabs it he's badly burned -- leaving an image of one side of the headpiece branded on his hand. He escapes while Indy and Marion do likewise and fly to Egypt to see Indy's pal, Sallah (John Rhys-Davies), who is working on the Nazi site and who reveals that the Nazis are aided by a French archaeologist (Belloq).