The second in-name-only sequel to the first Meatballs summer camp film takes place at Camp Sasquash, where owner Giddy fights to keep his camp open after it is threatened with foreclosure by Hershey, the militant owner of Camp Patton across the lake, who wishes to buy the entire lake area in order to expand Camp Patton. Giddy proposes that the dispute be resolved through the lake's traditional end-of-summer boxing contest. Meanwhile, a tough inner-city punk known as Flash is volunteering as a counselor-in-training at Camp Sasquash, where he develops feelings for the naive and intellectual Cheryl. Meanwhile, Flash's young charges make friends with an alien they dub Meathead, who is also staying at the camp for the summer.