A duo of unseen filmmakers, Ash Brannon and Chris Buck, venture into the quaint fishing village of Shiverpool, located in the stunning landscape of Antarctica, to chronicle the life of a teenage surfer named Cody Maverick (Shia LaBeouf). Cody is the sole surfer in his community and often faces derision from other penguins, including his older brother Glen (Brian Posehn), who constantly puts him down. Cody’s mother, Edna (Dana Belben), tends to be indifferent towards his surfing ambitions, often too engrossed in her own affairs to support him. She recognizes the challenges of Cody’s journey, considering he is much smaller than Glen and has grown up without a father, whose picture is a ghostly reminder, holding a fish just before being devoured by an orca.
Cody shares that his surfing enthusiasm ignited when the legendary surfer Big Z visited Shiverpool, gifting him a unique shell necklace. From that moment, Cody has aspired to match Big Z's extraordinary surfing skills and often dreams of escaping the confines of Shiverpool. This aspiration takes a turn when a surfer scout sandpiper named Mikey (Mario Cantone) arrives in Shiverpool via a whale, scouting for aspiring professionals from all over. When Mikey requests a demonstration of Cody's surfing skills, things don’t go as planned due to a lack of waves, prompting Mikey to leave in frustration.
Determined to showcase his talent, Cody pursues the whale and, with assistance from a laid-back chicken named Joe (Jon Heder), who is on a surfing expedition due to a lost bet, they forge a quick friendship. Pengu Island sets the stage for the 10th Annual Big Z Memorial Surfing Competition, where Cody and Joe interact with other surfers, including pro legends Rob Machado and Kelly Slater, while soaking in the vibrant local culture.
Their adventure becomes more engaging when a charming lifeguard named Lani (Zooey Deschanel) rushes past to rescue a young penguin named Arnold (Reed Buck) from a water crisis, stirring Cody's affections. With some encouragement from Joe, Cody gathers the courage to approach Lani, and their connection blossoms just as the filmmakers start to portray the quirky mishaps occurring around them.
As Cody and Joe explore, they stumble upon a shrine dedicated to Big Z, his surfboard resting against a rock—a haunting tribute to a surfing legend who vanished a decade ago during a contest on the island. The legend states that Big Z paddled out into a ferocious swell and was never seen again, leaving nothing but shattered pieces of his board. Their serenity is soon disrupted by the presence of Tank 'The Shredder' Evans (Diedrich Bader), a nine-time champion who rudely assaults Z's surfboard. When Cody intervenes, an argument ensues that grabs the attention of Reggie Belafonte (James Woods), the competition’s promoter, who proposes a one-on-one surfing duel between Cody and Tank to resolve the conflict.
The surfing showdown commences, but Cody suffers a wipeout, leading him to hit his head on a shallow rock. Fortunately, Lani manages to drag him to safety and revive him. However, when Cody starts to hallucinate, she seeks assistance from Geek (Jeff Bridges), who resides in a treehouse nearby. When he examines Cody, Geek inadvertently exacerbates the situation by introducing a strange method of treatment that leaves Cody mortified.
Lost in the chaos of Cody's recovery, Reggie remains indifferent to Cody’s well-being, focusing solely on his business interests. Lani becomes motivated to help Cody recover, believing it’s essential for Geek not to be isolated. After a tough morning, Geek imparts some wisdom to Cody about finding his own path and encourages him to craft his surfboard, setting him on a journey of self-discovery and friendship.
As Cody spends time with Joe, they navigate through their common ground of not knowing their fathers, while Cody embarks on creating a surfboard that embodies Z's teachings. Their quest leads to an exhilarating surfing experience and invaluable life lessons, pushing Cody to confront the pressures of competition and the true essence of surfing itself.
In an emotional climax, Cody overcomes his insecurities, accepting Z’s mentoring with open arms while they ride the waves together. Lani supports Cody through his surf competition, where he asserts himself against powerful adversaries, including Tank and Joe, revealing the heart of friendship and determination in a world that often seems overwhelming.
Ultimately, as the contest unfolds, Cody reckons with his past, retrieves his lost necklace, and reconciles his relationship with Z, leading to a fantastic finish where the community celebrates not just the victor of the contest but the revival of a treasured legacy. Cody addresses the filmmakers one last time, reflecting on his journey as he opts not to focus on accolades but on the experiences that brought him joy and connection.
