Warning: Wikipedia contains spoilers.
The movie starts in the fall of 1961, when there is a new group of students who are members of both the T-Birds and the Pink Ladies. Johnny and Stephanie are the head of the Birds and the Ladies, respectively. Johnny wants to keep dating Stephanie, whose feelings for Johnny are no longer there.
Meanwhile, an exchange student from England arrives in the shape of Michael, who is the cousin of Australian Sandy, played by Olivia Newton-John in part one. Michael asks Stephanie out, but Stephanie does not feel like going out with grade worried, good student Michael. Stephanie tells Michael she would like to date someone with a motorcycle.
Michael then decides to start a small school business, doing the T-Birds' homework for money, so he can buy his own bike and impress Stephanie. That opportunity came when the T-Birds go bowling one night, and The Cycle Lords, (who were The Scorpions in part one) come out to mess with them. A fight ensues and the T-Birds are being beaten, when suddenly, a mysterious, dark biker emerges and beats the Cycle Lords, embarrassing them and conquering Stephanie along the way. Now Michael had a dilemma: Either keep on going as the dark biker, or take the risk of telling Stephanie that he is the biker who has her so impressed and lose her forever.
Next, Michael goes over to Stephanies for a little romance, (dressed as the dark rider, of course), and they kiss, but Johnny sees them as they kiss and suffers a jealousy attack. As a consequence, he vows to retaliate against the helmet wearing stranger, on a talent show that was going to be performed that week.
At the June Moon Talent Contest (as summer graduation 1962 approaches), The T-Birds chase the dark biker into a construction site, from where he is forced to jump into the night. The T-Birds look around to try to find their victim. He is not found, and everyone assumes he has died. Stephanie, of course, feels broken hearted.
However, the talent show went on, and Johnny and Paulette were crowned king and queen of the talent show. Soon after, however, the Cycle Lords reappear, threatening to destroy everything within sight. Out of nowhere, the dark biker reappears, to Stephanies relief and happiness. His bike flies from one edge of the pool to the other as he beats the Cycle Lords again, and after this, he decides to take off his helmet and finally reveal himself to everyone else as Michael, the intelligent, exchange student from England.
While Stephanie is shocked, she realizes at that moment that the man she had loved all along was Michael, so she goes over to him and expresses her love to him with a kiss. Johnny was shocked too. Admiring Michael for the way in which Michael had beaten arch-rivals the Cycle Lords twice, he decides to make Michael a member of the T-Birds by handling him a T-Bird jacket.
Movie cast