As Ronnie, Burger and the Sockbaby leave their house to go someplace to food up, they are confronted by Davis the Grey, who wants to take Sockbaby to Lord Opticord, leader of the Greys. Davis informs Ronnie that this Sockbaby is "the Sockbaby Jesus, Sock-savior to the Sock-people". While Burger escapes with the Sockbaby, Davis and Ronnie fight each other, with Davis running off as he is defeated, and notified that, in the opinion of Ronnie Cordova, he and his brethren are "gay".
While Ronnie and Burger try to get their car started - Ronnie left the radio running, thus draining the battery - Lord Opticord dispatches more Greys to kill Ronnie and retrieve Sockbaby, including the ultra-powerful and poorly wardrobed club-wielding, two ton Chum-Chum. Ronnie once again manages to fight off a majority of the Greys, this time using even more spectacular fighting moves than before (utilizing a plasma pill), but he is eventually knocked down by the Chum-Chum.
Burger dispatches an odd-looking creature to kill Chum-Chum, and Ronnie rises again to defeat the remaining Greys, excluding Davis. Directly afterward he steps in a pile of dog feces, which he wipes from his shoe with a sock, tossing the sock on the ground. He then kills Davis for good, but discovers that Davis has killed Burger. Lord Opticord then confronts Ronnie directly. Opticord and Ronnie fight each other, during which Ronnie's funky disco medallion ties itself around both Ronnie's and Opticord's necks, putting both of them in an electric choke hold. While they are being choked, Opticord reveals to Ronnie what Opticord thought was the Sockbaby in his possession, but is actually Ronnie's discarded sock. Both Ronnie and Opticord then fall to the ground, dead. A shark robot then arrives, resurrecting Ronnie and leaving with the Sockbaby. Ronnie then finds that Burger has been revived as well, and together they leave to find some food.
The film begins with Ronnie being attacked at his backyard pool by divers in scuba gear. He defeats a number, and is then attacked by the divers' leaders (Jon Heder and Dan Heder) named "Manatu" (Probably based on the fact that one of them splits off from the other), who drag him into the pool. The divers say they killed Ronnie's master; Ronnie replies it was only his master's clone. Manatu's nearly drown Ronnie, at which point he is saved by Doug Jones (played by himself). Doug Jones explains that he is Ronnie's father, whereupon Burger appears and claims that this cannot be true, as he says Ronnie's father is black. Ronnie says that the situation is a lot to process, and asks Burger to let him deal with it. Burger heads to a laboratory to perform a DNA comparison, while Ronnie and Doug stay at the pool to catch up. Doug poisons Ronnie as Burger discovers that the DNA does not match. Ronnie asks Doug why he would do this, and it is explained that Ronnie's father killed Doug's son Guillermo. Doug throws Ronnie into the pool and an animated sequence showing Ronnie's anthropomorphized lungs drowning is shown. Burger arrives at the pool and defeats Doug, who asks his Guillermo for forgiveness as he dies. Burger performs CPR on Ronnie, who hallucinates that he is in heaven, and sees his mother before being resuscitated. Ronnie awakes and asks Burger whether they are gay for having engaged in CPR. He then laughs pulls a chewing gum out of his mouth and puts it in Burger's.