Those rambunctious kids are back in school and back in trouble in a smash sequel to the 1978 worldwide hit. Corey Feldman leads a rock and roll rally at Ronald Reagon High, but must triumph over the evil plans of the school's fascist principal, Vadar, who wants to halt the school dance and run their school like a prison.

The film centers on nerd Maxwell Dweeb (Robert Carradine), who is a loner with no friends. While watching television, he sees an advertisement for the Minnie Mouse Center for the Totally Unhip, named after its owner, Minnie Mouse. Dweeb, in an effort to improve himself, decides to attend. After being welcomed by the director (Suzanne Somers), Dweeb is taken on a tour of the centre, where other Disney characters run various courses: Goofy is a fitness instructor, Donald Duck is a wardrobe manager, and Pluto is a messenger boy. After finally meeting Minnie Mouse, Dweeb is taken on by the director, whom he eventually falls in love with, and dates once he has passed his training. The film is intershot with various musical numbers (including the duet "Don't Go Breaking My Heart" by Minnie Mouse and Elton John) and excerpts from early Disney shorts.