Two years from the
first film Mick Dundee and Susan "Sue" Charlton are living happily together in New York. Although Mick's ignorance of city life is a hazard when he attempts to continue his former lifestyle, like
blast fishing in
Manhattan's waters, Sue's writing has made him a popular public figure. He goes to work for Leroy Brown, a mild-mannered stationery salesman trying to live up to his self-conceived 'bad guy in the streets' image. While working for the
DEA in
Colombia, Sue's ex-husband Bob takes photographs of a drug cartel leader's murder of an unknown person, and is spotted by one of the cartel's sentries. He sends the photographs to Sue before being murdered. Colombian cartel leader Luis Rico and his brother and top lieutenant, Miguel, go to
New York City to retrieve the photos. The gangsters take Sue hostage, leading Mick to ask Leroy for help. Leroy contacts a local street gang, whom Mick asks to create a distraction by caterwauling at the mansion's perimeter, leading most of the cartel's guards on a wild goose chase while Mick rescues Sue. Rico goes into hiding to avoid arrest, and after his henchmen fail a subsequent attempt to kill Sue, Mick decides to take Sue to
Australia to protect themselves on familiar ground. In
Walkabout Creek, Mick is enthusiastically welcomed back by friends. After getting provisions, he and Sue take refuge on his personal land, named Belonga Mick. Here, Sue discovers that Mick legally owns a large plot of land, including a gold mine. Rico and his men track them to Australia, where they hire some locals to assist, but their
Aboriginal tracker promptly abandons the group upon learning that their quarry is Mick. The gangsters then take Mick's friend Walter as a hostage, but Mick saves him by
narrowly missing an aimed rifle shot at Walter's head. Walter convinces the gangsters that Mick's failed attack was because he is the only person suitable to guide them, so they take him as a replacement tracker. He then leads the gangsters on a false trail through the Outback, during which Mick, with the help of his Aboriginal friends he summoned with a
bullroarer, reduces the opposition's numbers one by one, leaving the rest increasingly nervous. Mick retrieves Walter from Rico and Miguel, leaving the latter to face him alone. Rico sets a
bushfire in a ploy to corner Mick, but Mick regains the upper hand, captures Rico, and switches clothes with him to lure Miguel into a vulnerable position. Sue, Walter, and Miguel begin shooting at the pair from a distance, mistaking their targets for each other. Walter and Miguel shoot Mick and Rico, respectively, and Rico falls down an
escarpment to his death. Sue shoots and kills Miguel, after which they learn of the clothing switch from one of the Aboriginals. Sue is relieved to find that Walter's shot has only wounded Mick, and the two embrace. He asks her if she is ready to go home to New York City, to which she joyfully replies, "I
am home." In Australia. ==Cast==