Long ago, a young Plains warrior faced a critical test, becoming the target of three different weapons aimed at proving his courage. Fast forward to present day, where Ernest P. Worrell, portrayed by Jim Varney, is a rather simple-minded redneck working as a maintenance man at the lively Kamp Kikakee, but he dreams of becoming a counselor. His unique ability to communicate through Plains Indian Sign Language catches the attention of Kikakee's owner, Chief St. Cloud, played by Iron Eyes Cody, making him a valuable asset to the camp.
Kamp Kikakee welcomes a group of juvenile delinquents known as the Second Chancers. The strict Head Counselor, Tipton (Larry Black), delegates them to the care of the camp's most seasoned counselor, Ross Stennis. Unfortunately, Stennis, portrayed by an uncredited actor, takes a disliking to the boys, treating them poorly. A significant turning point occurs when he nearly causes Moustafa Jones, the tiniest boy, to drown in the lake, only for him to be heroically saved by Ernest. Enraged, the boys retaliate against Stennis' brutal treatment by toppling his lifeguard perch into the water, resulting in a severe leg injury that sidelines Stennis.
With Stennis out of commission, Tipton sees an opportunity and offers Ernest a chance to fill the counselor position. Initially, the Second Chancers pose challenges for Ernest, but the mood shifts during a campfire session. Nurse St. Cloud, played by Victoria Racimo, brilliantly translates her grandfather's warrior initiation tale, which captivates the boys. In this ancient rite, the initiate must stand motionless as three dangerous projectiles are hurled at him, embodying incredible bravery that diverts each weapon's trajectory. This inspiring moment earns Ernest the respect of his charges.
As the young campers start to bond and even build a tepee, they face destructive downfalls orchestrated by Pennington, a rival camper. Tensions escalate, and Ernest intervenes, urging Tipton not to expel the Second Chancers for their mischief. Meanwhile, a shady mining corporation, under the lead of the conniving Sherman Krader, played by John Vernon, aims to seize the lands of Kikakee for petrocite extraction. Chief St. Cloud brazenly refuses to sell, prompting Krader to manipulate earnest into unwittingly signing away the land.
As the shocking news of the camp's closure reaches everyone, Nurse St. Cloud confronts Ernest, who vows to repair the damage he has caused. The Second Chancers rally around him, undeterred by their earlier doubts. They devise a courageous plan to storm the construction site and confront the bosses. When they arrive, they find the foreman, Bronk, who quickly overpowers Ernest, forcing him to retreat alone.
Yet the Second Chancers rediscover their bravery when they realize how much Ernest has sacrificed for them. They rush to find him and apologize. As Krader prepares to demolish Kamp Kikakee, Ernest and the boys choreograph a strategic raid, with support from Chief St. Cloud, chefs Jake and Eddie, and former rivals Pennington and Brooks.
In the heat of the skirmish, pushes and pulls ensue as Chief St. Cloud delivers a blessing before they set out, despite Nurse St. Cloud's pleas against the confrontation. The group effectively rigs non-lethal weapons, leading to an exhilarating clash at the site. However, chaos ensues when Bronk escapes in a bulldozer, wreaking havoc on camp buildings, but Ernest’s quick thinking saves the day as he stops him with a modified maintenance cart loaded with explosives.
As Krader confronts Ernest with a rifle aimed directly at him, a moment reminiscent of the ancient tribal ceremonial trials occurs. With a spirit of courage, Ernest bravely faces Krader as he fires three shots, each missing their mark. Channels from within, Ernest resolutely blocks the barrel with his finger, laughing defiantly at Krader's impotence in this showdown. As the defeated Krader retreats under the counsel of his lawyer, who remarks on the unexpected strength they have faced, a glimmer of hope emerges for the campers.
Soon after, Nurse St. Cloud returns to announce the arrival of an injunction against demolition, bringing relief to all. Kamp Kikakee flourishes once more with returning campers and a full staff, as Nurse St. Cloud expresses her gratitude towards earnest and reveals Krader's arrest for fraud. The victory feels complete as Chief St. Cloud appears to grasp English, solidifying Ernest’s newfound status as a full-fledged counselor. However, amid the celebratory mood, Ernest's enthusiasm causes him to tumble while trying to restore the Kamp Kikakee sign, leaving him knocked out, a fittingly humorous end to a most adventurous day.
