A cross-country road race is based on an actual event, the Cannonball Baker Sea to Shining Sea Memorial Trophy Dash, organized by Brock Yates to protest the 55 mph speed limit then in effect in the U.S. The Cannonball was named for Erwin G. "Cannonball" Baker, who in the roaring 20's rode his motorcycle across the country. Many of the characters are based on ruses developed by real Cannonball racers over the several years that the event was run.

The Bandit goes on another cross-country run, transporting an elephant from Florida to Texas. And, once again, Sheriff Buford T. Justice is on his tail.

After his release from prison, notorious ex-con and moonshine distiller Gator McKlusky moves in with his father in a cabin in the Okefenokee Swamp. His bootlegging plans are cut short, however, when a federal agent tells McKlusky that he will lose custody of his 9-year-old daughter unless he helps bring down local crime lord Bama McCall. McKlusky enlists the help of reporter Aggie Maybank and a few local eccentrics to bring down McCall's empire.

A woman who believes she has been chosen by God to heal people is taken in by a greedy promoter and his shrewish wife to make the rounds of the rural South - she to save souls and heal the sick, he to make as much money as he possibly can.