Sonny is severely injured after a fall, forcing a move to a desk job. Jerry and Lou have to leave Skippy behind. Dave and Kate try to make the 'Roo happy but Skippy runs away. The Hammonds must find a way to return to the reserve.
Jerry and Lou are captivated by their new friend Chris and his cool dirt bike a gift from his wealthy father. They learn that Chris has no regard for rules, persisting in tearing up the forest. The siblings decide to teach him a lesson with Skippy's help.
Skippy hides when the Hammond family take a boating trip but then gets left behind. Skippy is found by Miranda, a young wealthy girl, who refuses return the kangaroo. Jerry and Lou concoct a scheme to get their pet back.
Jerry has taken up running and is good which threatens Brendan Clarke who is used to winning. Pushed by his father to achieve Brendan resorts to cheating for his victories. Jerry, Lou, and Skippy work to expose the truth.
Lou thinks she sees a rare wallaby when they also meet a deaf girl Andrea, who is there with her zoologist mother Bridget. The sign language they learn comes in handy when Lou gets lost looking for the scarce animal.
Famous wildlife presenter Greg, an old friend of Kate's, arrives at the station to film some rare birds. Sonny and the kids worry about a possible romance. An injury to Lou leads Skippy to ruin the photo shoot but help rescue Lou.