In the aftermath of the events that took place in the first film, Smokey has entered rehab to cure his marijuana addiction. Meanwhile, rumors have been spreading that Deebo, the neighborhood bully, will be breaking out of jail to get revenge on Craig, so Craig's father Willie decides it would be safer for Craig to move to Rancho Cucamonga and live with his uncle Elroy and cousin Day-Day, who had won the lottery and were able to afford a nice house in a middle-class neighborhood. Elroy spends his days consuming large amounts of marijuana and making sex tapes with his wife, Auntie Suga, while Day-Day works at a record store and tries to avoid his pregnant ex-girlfriend D’Wana and her violent sister Baby D.