Spanky McFarland, the enthusiastic president of the "He-Man Womun Haters Club," leads a group of school-aged boys from the neighborhood. His closest ally, Alfalfa, has been selected as the driver for their championship-winning go-kart, "The Blur," in a highly anticipated Soap Box Derby race. However, things take a turn when Alfalfa goes missing just before the announcement.
The boys soon discover Alfalfa spending time with the charming Darla, which ignites jealousy among his friends. In a bid to dismantle their budding romance, the club members' antics unintentionally result in their treasured clubhouse being engulfed in flames. Misunderstanding Alfalfa's feelings, Darla thinks he is embarrassed by her, leading her to seek companionship with Waldo, the affluent new kid whose family is in the oil business. Consequently, Spanky, Stymie, and the gang deem it necessary to punish Alfalfa by making him guard the go-kart until race day.
Determined to win back Darla's affection, Alfalfa embarks on several failed attempts to impress her, from attending her ballet practice to composing a love letter and even singing a serenade. Meanwhile, the boys rally together to raise $450 needed to repair their clubhouse. Little do they know that their youngest members, Porky and Buckwheat, have unknowingly amassed $500. When their teacher, Miss Crabtree, discovers their plan, Spanky manages to persuade her to use the funds as a reward for the race.
Tensions rise as Alfalfa confronts Spanky, discovering he is the one who caused his rift with Darla, leading Alfalfa to resign from the club in frustration. Compounding their troubles, local bullies Butch and Woim steal "The Blur." With a new challenge at hand, the boys work together to create "The Blur 2: The Sequel." Before the race, Spanky and Alfalfa mend their friendship and climb into the two-seater go-kart, vying not only for victory but also for the affection of Darla, who turns out to be at the center of their rivalry.
Race day brings its own set of obstacles as Butch and Woim continuously attempt to thwart their chances. Meanwhile, Waldo's treachery takes shape as he tries to undermine Alfalfa's success. In a thrilling conclusion, "The Blur 2" finishes ahead in the race (after a nail-biting photo finish), showcasing Alfalfa's signature cowlick as a near-winning touch. After an amusing clash with Butch and Woim, which ends with them in pig slop, Alfalfa not only secures first place but also revives his romance with Darla, who reveals she was the one who ditched Waldo.
In a shocking twist during the trophy ceremony, Spanky has an unforgettable encounter with his idol, A.J. Ferguson, who he discovers is a woman. The boys' victory leads to a transformed club ethos, modifying their sign to invite girls: “Women Welcome.” The film concludes with whimsical bloopers featuring the children during filming, and a surprising revelation about Uh-Huh’s expressive capabilities.
