Media mogul Bill Biscane (JON VOIGHT) aspires to "world domination" via a mind-altering device sent through television. Ambitious Stan Bobbins (SCOTT BAIO) and his wife Jean (VANESSA
ANGEL) unknowingly agree to help the villain, by becoming partners in his scheme to launch his network. (Stan is brother to the first film's Dan [PETER MacNICOL] pictured here in a framed photo on Stan's desk).
Together, the Bobbins run an elite daycare center called BobbinsWorld, where four babies in
particular -- Archie (MICHAEL and MAX ILES), Quentin Finkleman (JORDAN and JARED SCHEIDERMAN), Alex (JOSHUA and MAXWELL LOCKHART) and Rosita (MAIA and KEANA BASTIDAS) -- join with the superhero, Kahuna (LEO, MYLES, and GERRY FITZGERALD, returned
from the first film) to protect "all the children of the world."
Biscane and Kahuna's previous encounter is revealed in a flashback narrated by Archie. In "East Berlin, 1962," Kahuna saves German children from a barracks-like orphanage. Biscane, then named Captain Kane and dressed like a Nazi, instructs his armed guards to stop the child, but he bests them with gadgets
and mighty fighting skills (the last initiated when he drinks a glowing neon-green fluid from his baby bottle and his arm and chest muscles bulge out). Kane swears revenge against Kahuna.
Back in present Los Angeles, Stan and Jean remain clueless when Biscane shows up with minions. One of them, Crowe (PETER WINGFIELD) loses a CD that contains the mind-control data (to be sent out through a children's TV show), and it lands in a stroller bearing the four babies, and piloted by Stan's teenaged niece Kylie (SKYLER SHAYE). Kahuna shows his new friends his secret lair and gizmos (including holograms). He calls Stan and Jean, and lies to them, saying they are in San Diego and being
looked after by a policeman, who appears on the telephone video screen as one of Kahuna's holograms.
Kylie meets Kahuna's assistant Zack (JUSTIN CHATWIN), who explains Kahuna's back story: Kahuna's scientist father (BARRY GREENE), working in East Berlin, made a serum that the child accidentally ingested as a baby. Kahuna's older brother resents him. The father dies, and Kahuna pledges to carry on his vision of helping children all over the world. Because he can never grow up, he is "the Peter Pan of babies." Back in present day, Kahuna and Biscane eventually have a showdown, with assistance
from the babies and Stan and Jean.