The film is set in a dystopian near future, in Detroit, Michigan. Violent crime is out of control, and the city is in financial ruin. The city government contracts the megacorporation Omni Consumer Products (OCP) to fund and operate the Police Department, in effect privatizing it. OCP is not interested in rebuilding "Old Detroit" but rather replacing it with a modern utopia called "Delta City". Before this construction project can begin, however, OCP needs to end crime in the city, but knows it can't rely on an already undermanned police department.

At an executive meeting OCP Senior Vice President Dick Jones (Cox) presents the new law enforcement droid ED-209, which he believes will end crime in Old Detroit. The demonstration quickly goes awry, resulting in the violent death of a junior executive. Bob Morton (Ferrer), an opportunistic young executive, uses the opportunity to propose his "RoboCop" program directly to the head of OCP, the Old Man (O'Herlihy), who accepts. As a result, Morton immediately earns the hatred of Jones.

Meanwhile, Detroit police officers Alex J. Murphy (Weller) and Anne Lewis (Allen) pursue a crew of thugs during an armored car]] robbery. Later, inside an abandoned steel mill, Murphy is captured, tortured and shot in the head by the notorious gang leader Clarence Boddicker (Smith) and his men. After being pronounced dead, Bob Morton's team reconstructs him into a cyborg, and he is dubbed "RoboCop." RoboCop patrols the city and proves extremely effective at stopping violent crime. Morton's overwhelmingly successful project propels him to an OCP vice presidency, but Dick Jones warns him that his humiliation won't go unanswered. Boddicker, who has been secretly working for Jones, arrives at Morton's mansion and murders him on Jones' orders.

As time passes, RoboCop begins to regain memories from his previous life and grows determined to hunt down Boddicker and his gang. Boddicker is arrested by RoboCop following a gunfight in a cocaine refinery. In desperation, Boddicker announces that Dick Jones is supposed to be protecting him. After attempting to arrest Jones, RoboCop learns of Directive Four, which prevents him from arresting any senior OCP executive, and he is disabled in Jones' office. After Jones boasts of his crimes, RoboCop is severely damaged by an ED-209 and a police SWAT team. However, he escapes with the help of his former partner, Anne Lewis.

Jones frees Boddicker and, after ordering him to destroy RoboCop, he promises to make him the new crime lord of Delta City. Boddicker's gang members, rounded up by RoboCop, are released when the police force goes on strike. Supplied with military weapons by Jones, they follow RoboCop to the same abandoned steel mill in which the gang murdered Officer Murphy. In a final showdown, RoboCop and Lewis kill Boddicker and the gang. The battle leaves RoboCop damaged and Lewis seriously wounded.

RoboCop proceeds to the OCP headquarters and reveals evidence of Jones' crimes to the OCP board of directors. Jones tries to take the CEO hostage, but as he starts making demands, the Old Man fires him, thus invalidating his protection under Directive Four. RoboCop immediately shoots Jones, sending his body flying through the boardroom window. When the Old Man asks for his name, RoboCop replies simply: "Murphy."

Nominated for 2 Oscars. Another 11 wins & 7 nominations

Filming began during the summer of 1986 and lasted from August 6 until mid-October. Interestingly, the scenes depicting Murphy's 'death' were not filmed until the following January (1987), some months after principal shooting had ceased. Many of the urban settings of the movie were filmed in downtown Dallas, Texas due to the futuristic appearances of the buildings. The front of Dallas City Hall was used as the exterior for the fictional OCP Headquarters, combined with extensive matte painting to make the building appear taller.

Peter Weller had prepared extensively for the role using a padded costume (supposedly, development of the actual RoboCop suit was three weeks behind schedule). By the time shooting was underway and the costume arrived on set, however, Weller discovered he was almost unable to move in it as he had anticipated, and required additional training to get accustomed. Weller later revealed to Roger Ebert that during filming, he was losing three pounds a day due to sweat loss while wearing the RoboCop suit in +100°F (+38°C) temperatures.[4] Peter's personal assistant, Todd Trotter, was responsible for keeping the actor cool in between takes with electric fans and, when available, large ducts connected to free-standing air conditioning units. The suit later had a fan built into it.