Mick Dundee (PAUL HOGAN) is a famed crocodile hunter in Walkabout, Australia who lives there with his girlfriend, Sue Charleton (LINDA KOZLOWSKI), and their son, Mikey (SERGE COCKBURN). When Sue gets a request from her newspaper publisher father to temporarily fill in for the Los Angeles bureau chief who died in a mysterious car accident, the family agrees to move to Los Angeles for a change of pace.
There, and working with fellow Newsday employee Jean Ferraro (AIDA TURTURRO), Sue reopens an investigatory story about Arnan Rothman (JERE BURNS) and his small movie studio that keeps churning out movies despite them being box office duds. Meanwhile, Mick and Mikey take in the sights as tourists and try to deal with the cultural differences they encounter.
To assist Sue and her investigation, Mick decides to get a job on the movie set and thus becomes an extra where he gets help from actor Diego Gonzalez (PAUL RODRIGUEZ). With fellow Aussie croc hunter Jacko (ALEC WILSON) watching over Mikey and falling for his elementary school teacher, Dorothy Mathis (KAITLIN HOPKINS), Mick starts nosing around the studio. After eventually spotting Rothman's henchman Milos Drubnik (JONATHAN BANKS) involved in some suspicious behavior, it's up to the croc hunter to figure out what they're doing and then save the day.