Some time after the Battle of New York, Tony Stark has isolated himself from the outside world, obsessively building powered suits to counter his insomnia. This causes friction with his girlfriend, Pepper Potts, before he finally admits that something about him has changed since he left New York City. The situation becomes even worse when Pepper is visited by Aldrich Killian, her old love interest who offers her to join his Advanced Idea Mechanics.
The United States of America has come under attack from the Mandarin, a terrorist leader responsible for a string of bombings that have left intelligence agencies bewildered at the lack of evidence left behind. When Happy Hogan is caught up in what looks to be one of the Mandarin's attacks, Stark pulls himself out of his stupor and issues a threat of his own, inviting the Mandarin to his home to settle their differences with their fists. Shortly after, Stark is visited by an old acquittance Maya Hansen, and the same time, Stark's home is attacked and destroyed by Mandarin's helicopters. Stark survives the attack, but is left stranded in rural town Rose Hill, Tennessee when J.A.R.V.I.S. follows a flight plan left in his system, and Stark's experimental armor does not have sufficient power to return to California. The world believes Stark to be dead as the Mandarin starts issuing more threats of violence.