Rocky the Squirrel and Bullwinkle J. Moose find themselves living in a state of sorrow following the cancellation of their beloved television series in 1964. Their once vibrant home of Frostbite Falls faces deforestation, resulting in Rocky losing his ability to fly, while their enigmatic Narrator now resides with his mother. On the flip side, their infamous adversaries—Fearless Leader, Boris Badenov, and Natasha Fatale—struggle for relevance after the Cold War, left powerless in Pottsylvania. The villains tunnel their way to a Hollywood film studio and cunningly persuade executive Minnie Mogul to sign a contract, allowing them to bring their show to life, ultimately transforming them into live-action characters.
Fast forward six months: Fearless Leader and his cronies establish RBTV, also humorously dubbed "Really Bad Television," in New York City. Their objective? To brainwash viewers into supporting Fearless Leader’s presidential aspirations. In response, FBI Director Cappy von Trapment enlists rookie agent Karen Sympathy to recruit Rocky and Bullwinkle, tasking them with thwarting RBTV's dangerous broadcast. Karen ventures to a movie-generating lighthouse in Los Angeles, pulling Rocky, Bullwinkle, and the Narrator into the real world.
Upon realizing Rocky and Bullwinkle have returned, Fearless Leader sends Boris and Natasha on a mission to eliminate the dynamic duo. Equipped with a CDI (Computer-Degenerating Imagery), a device capable of trapping cartoon characters online, the villains pursue them relentlessly. After their truck is stolen, Karen is captured but cleverly manipulates a smitten Swedish guard named Ole for a daring escape. Rocky and Bullwinkle receive assistance from students Martin and Lewis from Bullwinkle's alma mater, Wossamotta U. In a diabolical plot, Boris and Natasha attempt to assassinate Bullwinkle, leading to an honorary "Mooster's Degree" being awarded to him. Amid the chaos, Rocky miraculously regains his flying abilities just in time to thwart the murder attempt.
The chase reaches Chicago, leading to the accidental destruction of Boris and Natasha’s helicopter. Although Karen reunites with Rocky and Bullwinkle, they are once again apprehended by state troopers. During their trial, presiding Judge Cameo drops the charges upon recognizing the characters, stating that celebrities enjoy a unique status under the law. The trio seizes the opportunity to escape by purchasing a tattered biplane, even as their villains consider retirement, falsely reporting their supposed victory to Fearless Leader.
As the heroes' plane struggles under the weight, Rocky courageously flies Karen to New York to halt the brainwashing broadcast, only to fall captive to Boris and Natasha. Fearless Leader then sets his plan in motion, disseminating propaganda to manipulate the public.
In a spectacular turn, Bullwinkle crash-lands just outside the White House, only to spy a brainwashed President thanks to RBTV. Fortunately, Bullwinkle's renowned stupidity shields him from the effects. Cappy arrives, uploading Bullwinkle into the White House’s system, who disrupts Fearless Leader’s address to the nation, precipitating an uproar that results in the capture of the villains. Following this chaotic showdown, Karen, Rocky, and Bullwinkle rally the American people to replant Frostbite Falls. In a lighthearted blunder, Bullwinkle inadvertently activates the CDI, reverting the villains back to their animated forms and banishing them to the depths of the Internet for good.
In the aftermath, Rocky and Bullwinkle experience a resurgence as RBTV is rebranded to "Rocky and Bullwinkle Television." Meanwhile, Karen embarks on a new romance with Ole, as Rocky, Bullwinkle, and the Narrator return happily to their revitalized Frostbite Falls.
