A group of Florida high school students plan on losing their virginity in 1954. They go to Porky's, a strip club out in the Everglades, believing that they can hire a prostitute to satisfy their sexual desires. Porky takes their money, but humiliates the kids by dumping them in the swamp. When the group demands their money back, the sheriff, who turns out to be Porky's brother, arrives to drive them away, but not before his minions extort the rest of their money and cause them more embarrassment. After Mickey (who returned to Porky's for revenge) is beaten so badly he has to be hospitalized, the gang becomes hellbent on exacting revenge on Porky and his brother, eventually succeeding in sinking his establishment in the swamp. Porky and his men, joined by the sheriff, chase after the group, but they make it across the county line (out of Porky's brother's jurisdiction), where they are met by a group of the local police officers, one of whom is Mickey's older brother Ted, and the high school band. After Ted repeatedly damages Porky's car, he says that all charges against Porky for driving an unsafe vehicle will be dropped if the night's events are forgiven. Because the boys were too young to be legally allowed in Porky's in the first place, Porky and his brother have no choice but to agree. The film ends with the group getting their revenge and Pee Wee finally losing his virginity.
The Angel Beach High School Drama Club is producing a William Shakespeare Festival in which the group from the first film is participating. A religious leader named Bubba Flavel wants to halt the production because his group, "The Righteous Flock," believe Shakespeare is indecent and profane. Flavel recruits the support of the local Ku Klux Klan chapter by informing them that the Festival will feature an interracial kiss between John Henry, a Seminole student playing Romeo Montague, and a white Juliet played by Wendy. The students seek the help of County Commissioner Gebhardt, who promises to pull some strings to keep the Festival running on the condition that seventeen-year-old Wendy will go on a date with him. When it becomes clear that the "date" requires her to have sex with him, Wendy refuses and Gebhardt reneges on his promise. Though the Angel Beach principal supports his students, he is forced to cancel the Festival in the face of public outcry. The Angel Beach gang plots revenge against Flavel, Commissioner Gebhardt, the rest of the county commissioners, and the Klan.
As graduation nears for the class of 1955 at Angel Beach High, the gang once again faces off against their old enemy, Porky, who wants them to throw the school's championship basketball game because he's betting on the opposing team.