In Los Angeles, a curious pair, Mack Daddy O'Nasses and Slug, stumble upon a hidden chamber packed with gold, along with a statue-like Leprechaun restrained by a neck medallion. Mack Daddy pockets a gleaming gold flute, but Slug removes the medallion, freeing the Leprechaun who immediately kills Slug. Using the medallion, Mack Daddy traps the creature again and leaves with the flute, setting up a dark, rising threat.
Twenty years later, three aspiring rap artists — Postmaster P., Stray Bullet, and Butch — struggle at an audition when their speaker is destroyed. Their attempt to swap a guitar they claim belonged to Jimi Hendrix for cash brings them into contact with pawn shop owners Jackie Dee and Chow Yung Pi. Stray Bullet convinces Mack Daddy, now a successful producer, to pick them up, but he abandons them when Postmaster P. refuses to push their music toward aggression.
In a bid for revenge, the trio breaks into Mack Daddy’s office to rob him. During the chaos, Postmaster P. shoots him in the chest, believing he has ended him, and steals the golden flute from Mack Daddy’s wrist. In the confusion, [Butch] accidentally frees the Leprechaun by stealing the amulet from its stone body. The Leprechaun begins a brutal hunt, aided by his “Zombie Fly Girls,” a trio of enslaved women empowered by his magic, to recover the flute whose tune can hypnotize listeners. Mack Daddy, who survives thanks to the bullet being cushioned by his necklace, hunts the trio in parallel, since the flute is the keystone of his musical power.
The Leprechaun’s rampage intensifies after he eliminates Reverend Hamson, Jackie Dee, Chow Yung Pi, and Fontaine Rivera, narrowing the chase to the three friends at a hip-hop contest that promises a path to Las Vegas and a major record deal. He coercively forces Stray Bullet to point his gun at [Butch], threatening to kill him unless the flute is returned. Postmaster P. reluctantly complies but then miscalculates, prompting Stray Bullet to compel him to shoot himself as Butch and Postmaster P. watch in horror.
Butch and Postmaster P. hatch a plan to strip the Leprechaun of his powers with a joint laced with four-leaf clovers, hoping to reclaim the flute and pursue fame in Las Vegas. Disguised in drag, the duo infiltrate the Leprechaun’s club. Postmaster P. breaks the Leprechaun’s spell on the Zombie Fly Girls by letting them share a clover joint, guiding them to the upstairs lair. The Leprechaun, pressing an improper demand, is temporarily subdued when the clover joint renders him unconscious. The friends reclaim the flute and descend, only to be intercepted by Mack Daddy, who shoots Butch. Postmaster P. responds with three shots of his own, and the Leprechaun retaliates with magic that pins Postmaster P. to a girder. As the Leprechaun closes in, the duo distracts him long enough for Mack Daddy to strike with a wooden chair, but the Leprechaun explodes Mack Daddy’s torso with a final burst of magic, tossing the amulet into the air.
Time passes, and Postmaster P. emerges as a successful rapper, yet the glow in his neon-green irises betrays the lingering hold of the Leprechaun, who has become his manager. The Leprechaun proclaims that he taught Postmaster P. everything he knows and revels in his own wicked influence, seizing control of the music world and leaving the audience with a chilling sense of his enduring power.
