Plot
One year after the events of the previous film, Bartleby and his dog Budderball are spending the summer at the farm of Bartleby's grandfather Marvin. On Bartleby's twelfth birthday, Marvin gives him the first issue of the comic book Kid Courageous and Captain Canine, which details the origin of the superhero Captain Canine. He comes from the planet of Inspiron, which was peaceful until the alien warlord Drex invaded, seeking to steal the Rings of Inspiron. The soldier Captain Megasis was tasked with taking the Rings to Earth despite the reluctance of Queen Jorala. While doing so, he was attacked by Drex. In the ensuing battle, Drex was seemingly killed and Megasis safely landed on Earth with the Rings.
While celebrating his birthday with his friends, Bartleby's dogs find the Rings in a barn. When they return, Bartleby tells them the story of Captain Canine. After he landed in suburban Seattle, Megasis took the form of a dog to hide from the police and began searching for the Rings. While doing so, he met a boy named Jack and the two began fighting crime as Kid Courageous and Captain Canine, with Jack adapting their adventures into comic form.
The next day, Captain Canine detects the Rings' energy source and he and Jack begin tracking the Rings along with Drex. Upon discovering that the Rings have given them superpowers—super speed for Rosebud, invisibility for Mudbud, super strength for Budderball, flexibility for B-Dawg, and telekinesis for Buddha—the dogs decide to use their powers for good.
Meanwhile, Drex lands near Marvin's farm and begins searching for the Rings, but Dan does not believe what Martin saw. Dan leaves to investigate a call from dispatch that Drex has stolen Marvin's truck and crashed it into city hall, during which he captures and arrests Drex. While Bartleby and the children discover the pod and conclude that Drex has arrived, the dogs save a girl from a fire with help from Captain Canine, who teaches them to use their powers.
While the children learn of the dogs' heroics from the news, Drex possesses Dan and escapes from the police station, capturing them after they arrive to meet with Dan. Drex arrives at Marvin's farm and uses his pod's weapon systems to direct a meteor towards Fernfield. During the battle, Captain Canine and Drex are both killed, with the latter losing control of his ship and crashing into the meteor.
The dogs use the Rings to resurrect Captain Canine, who returns to Inspiron with Drex's former assistant Monk-E and Jorala. Afterwards, Jack and Bartleby create a new comic book series about the dogs.
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