The nerds are now in control of the university, as a result of Lewis Skolnick and the rest's actions in the two previous movies. A new generation of sportsmen arrive, however, determined on winning the school back. The principle, himself an ex-nerd fighter, helps them, and the nerds return to suppression. Harold Skolnick needs help from his uncle Lewis, the hero of the first two movies. Lewis, however, are not too proud of his nerd past, and won't reveal any of it, much less help his nephew. However, his wife makes him change his mind, and with help from his friends from the first two movies, they start the fight to win the school back, using classic nerd tricks.

Some unknown source has interrupted all television transmissions around the world. In place of the regular broadcasts, a lineup of extremely tasteless programs and commercials have been substituted. Included in the mix are such show as The Shitheads, The Charles Whitman Invitational, and commercials for a number of improbable products.