We present a novel case-based plan recognition method that interprets observations of plan behavior using an incrementally constructed case library of past observations. The technique is novel in several ways. It combines plan recognition with case-based reasoning and leverages the strengths of both. The representation of a plan is a sequence of action-state pairs rather than only the actions. The technique compensates for the additional complexity with a unique abstraction scheme augmented by pseudo-isomorphic similarity relations to represent indices into the case base. Past cases are used to predict subsequent actions by adapting old actions and their arguments. Moreover, the technique makes predictions despite observations of unknown actions. This paper evaluates the algorithms and their implementation both analytically and empirically. The evaluation criteria include prediction accuracy at both an abstract and a concrete level and across multiple domains with and without case-adaptation. In each domain the system starts with an empty case base that grows to include thousands of past observations. Results demonstrate that this new method is accurate, robust, scalable, and general across domains.