The film kicks off by revisiting the events of the first Porky's installment. Edward "Pee Wee" Morris (Dan Monahan) wakes up exuberantly exclaiming, “I've been laid!” filled with joy. It's the day after the memorable escapades of the previous film, and in the spirit of his newfound maturity, he adds a mark to his personal maturity chart that he keeps hidden beneath his mattress. Despite his enthusiasm, he notices that his equipment seems less responsive than before, attributing it to a period of adjustment following his sexual encounter. Unfortunately, his mother, Mrs. Morris (Ilse Erl), unknowingly walks into his room while he's in a compromising state, leaving her utterly astonished when she lays eyes on both the chart and the situation.
Back at Angel Beach High School, Pee Wee takes pride in having claimed Wendy Williams (Kaki Hunter), boasting to his friends about her affection. However, his peers tease him, making it clear that Wendy doesn’t view this as a significant achievement. She openly expresses her desire for a more earnest relationship, revealing that Pee Wee’s friends actually orchestrated a prank on him, leaving Wendy feeling quite satisfied despite the ruse.
The Drama Club is gearing up for a Shakespeare-themed production for an upcoming theater festival, and the boys from school are all participating. Pee Wee disrupts a science class when the sight of vivisected frogs makes him queasy. Although he faces punishment for a prank he didn’t commit, the science teacher, Mr. Howard Neu, reprimands him. Despite meddling doubts about Wendy’s faithfulness, she reassures Pee Wee that rumors about her abound because people misunderstand her. In a show of loyalty, Pee Wee pledges to defend her honor against any critic who dares to speak ill.
Among Pee Wee's crew are Tommy Turner (Wyatt Knight), Tim Cavanaugh (Cyril O'Reilly), Billy McCarthy (Mark Herrier), and Anthony "Meat" Tuperello (Tony Ganios), who welcome a new student, Johnny Henry (Joseph Runningfox). Johnny is set to perform in the same production. Things take a humorous turn when Anthony has to dress as a fairy, sparking laughter among the others. Later, the boys venture out to a carnival hoping to watch a dancer who is reminiscent of the Dance of the Seven Veils. When Pee Wee reluctantly hits the stage in a costume that resembles a green Puck, he is met with uproarious laughter.
Trouble brews when Coach Beulah Balbricker (Nancy Parsons) and Reverend Bubba Flavel (Bill Wiley) storm in, demanding the cancellation of the play, criticizing its content, and objecting to Johnny’s casting as the lead. After a chaotic meeting with Principal Mr. Floyd J. Carter (Eric Christmas), the fervent Reverend loses a battle of wills when Carter counters by quoting romantic passages from the Bible to diffuse Flavel's outrage.
That night, Pee Wee continues his mischief as he plays a prank that leaves him naked and runs off after startling Laura, reeking of embarrassment. When the police spot Pee Wee in a fit of panic, they only observe the chaos without intervention, leading to a slapstick moment as he collapses onto the road.
The following day unveils more hijinks as some students orchestrate a prank on Coach Balbricker involving a live snake in the restroom, resulting in an uproar at school. As rehearsals for the play are halted, Gebhardt, a county commissioner, encourages the gang to persist in their advocacy for the show, indicating a dark underbelly of local politics and corruption.
After Johnny is brutally assaulted by a group opposing the casting of a Seminole character as Romeo, the stakes heighten. Yet, amid all the turmoil, the Shakespearean festival,
against the odds, pushes on. During a theatrical swordfight scene, Johnny finds himself improvising with broken props, a reflection of the chaos surrounding them.
With tension escalating, the playful spirit risks shattering when Flavel insists they shut down the production. Amid the pandemonium, Pee Wee delivers a heartfelt monologue dressed as the green-skinned character. Meanwhile, the gang finds themselves entangled in a wild scheme to prove a point against the hypocritical actions of the local leaders, culminating in a series of comedic yet poignant moments.
As the dust settles on a chaotic night filled with poise and absurdity, Wendy stages a grand spectacle to make her mark in a bid for revenge against Gebhardt. In the aftermath, secrets are laid bare, and the balance of power shifts dramatically during another scandalous reveal.
Ultimately, the resolution leads to a triumphant Shakespearean Festival with Johnny praised as a local hero, and Pee Wee and Wendy rekindling their romance. Amid the chaos of the KKK and the antics of the local commissioners, the film concludes on a note of laughter and redemption, solidifying the enduring legacy and friendships forged through mischief and heart.
