Young Kid has been invited to a party at his friend Play's house. But after a fight at school, Kid's father grounds him. None the less, Kid sneaks out when his father falls asleep. But Kid doesn't know that three of the thugs at school have decided to give him a lesson in behavior.
Play gives Kid's college scholarship check to a con artist Sheila Landreaux posing as a record executive. Kid is given one week by the dean to pay his tuition fee or face being kicked out of college. The dean's assistant helps Kid with an extension and a job in the dining hall. Kid steals the key to the faculty dining hall. In order to raise the money, Kid, Play, Bilal and Kid's roommate, Jamal secretly hold a pajama themed party for the students in the faculty dining hall to raise money for Kid to stay in college until Play sees the con artists and Kid sees Miles with Sydney. Kid, Play and campus security go upstairs to stop the con artists and Miles. Kid fights Miles on the roof. The dean and the police come in to stop the party. Play tells the dean where Kid's check went to the con artists, Rick and Sheila are arrested and Miles is arrested and fired from his job. The dean tells Kid, Play, Bilal and Jamal to clean up the faculty dining hall or they will face expulsion. Kid gives the money to Mr.Lee for the damages, Kid goes to his pop's grave where he meets Play, who arrives with the tuition money. Meanwhile, Kid's former high school rivals Stab, Zilla and Pee Wee take jobs as campus security in order to make Kid's life miserable one more time (but later reform and befriend him) as Kid tries to balance work and study along with his relationship with Sydney. During the film's climax Kid was advised by Prof. Sinclair to remain in school in lieu of dropping out when he stated that once a promise is made to return it is not fulfilled and in return, Play sells off his Ford Mustang convertible and uses the money to pay off Kid's tuition fees (during the film's end their run down car from the first film was used as a work vehicle).
Christopher, a.k.a. Kid is marrying his girlfriend Veda, while his best friend Peter, a.k.a. Play is dipping his fingers into the music business and attempting to manage a roughneck female Rap music act called Sex as a Weapon. Play books the ladies for a concert with heavy-hitting promoter Showboat, but when they decide to fire Play and hire a new manager, he has to figure out how to deliver them to the show or face the wrath of Showboat's female security force.