प्लॉट

A malfunction threatens to destroy Stitch and his friendship with Lilo!

Stitch has been having a series of bad dreams. They are a symptom of his incomplete manufacture of Dr. Jumba Jookibah's Experiment 626. Jumba was arrested for unauthorized genetic experiments before Stitch's molecules could be completely charged. Now Stitch is losing energy that causes him to periodically and unpredictably go berserk. He keeps unintentionally sabotaging Lilo's attempts to create an original hula dance for the upcoming Aloha festival. Jumba can track Stitch's dwindling resources and tries his best to build a new fusion chamber in which to recharge him before it is too late. Stitch has one too many outbursts for Lilo's patience, so she sends him away. Big sister Nani tries to comfort her. Lilo has been counting on winning the hula contest just like her mother had done when she was a young girl about Lilo's age.—Garon Smith

After everyone has settled in with the new version of the family, a technical problem starts to occur inside of a male alien creature. The technical problem makes him dangerous and a threat to the rest of the family. The family do everything that they can to fix before it is too late.—RECB3

Taking place between the original "Lilo and Stitch" and "Stitch: The Movie", "Lilo and Stitch 2" finds the rowdy extraterrestrial getting used to life with his new ohana. However, a malfunction in the ultimate creation of Dr. Jumba soon emerges, which reinstates his destructive programming and threatens to both ruin his friendship with Lilo and to short him out for good!—GigaCaesar

Stitch (Chris Sanders) is having nightmares about him reverting to his destructive self and hurting Lilo (Dakota Fanning) in the process by scratching her in the face. He tells Lilo all about his nightmares. Lilo believes that Stitch is afraid of turning bad again. After consoling Stitch by reminding him that she knows he would never cause harm to her, Lilo tests his goodness level by having him do a few good deeds. Things like saving her Elvis lamp from breaking or preventing her "plastic surgeries gone wrong" book to be thrown out of the window or even saving Lilo from falling to the floor. Upon discovering that they are late for hula class, they use their hovercraft to get there.

They stay with Lilo's sister Nani (Tia Carrere), along with Jumba (David Ogden Stiers) a Kweltikwan mad scientist formerly employed by Galaxy Defense Industries who created Stitch, and Wendy Pleakley (Kevin McDonald) a Plorgonarian agent formerly employed by the United Galactic Federation, who assigned him as Jumba's assistant on Earth.

While at the hula class, Kumu (Kunewa Mook) (the dance teacher) announces that Lilo and her classmates will be prepared to perform at the local May Day festival. Each student is required to create an original dance. Lilo is inspired when Kumu tells her about her mother being in the festival at her age and winning, giving her a picture of the event. After the hula class ends, Mertle (Liliana Mumy) insults Lilo by telling her that she will never be like her mother, causing her to start a fight with her. However, after taking pictures of the brawl, Stitch forgets to flush the evidence.

Lilo refuses to apologize for her actions and says that the next time Mertle insults her mother, she will not be spared. Kumu thinks that Lilo is not ready for the competition because of the fight with Mertle, but Lilo says that she is ready and "triple promises" to be good from then on.

Nani has her hands full as Jumba and Pleakley are no help around the house and instead they make a mess that Nani has to deal with. On top of this, Lilo's troubles pushes her over the edge, due to which Nani is not able to give any attention to her boyfriend David.

While preparing for the competition, Lilo and Stitch have a hard time coming up with ideas. The themes they try are mummies, vampire bats, amputation, recycling, gossip, sky diving, and so on. Nani wants them to enjoy their family fun night as she had worked very hard to prepare dinner. While watching Them! together with Jumba, Pleakley, and David, Stitch unexpectedly starts to glitch out, which causes him to go berserk in the house. Stitch ends up destroying the feast that Nani had prepared for the entire family.

It seems that after Stitch was created, Jumba did not get a chance to fully charge Stitch's molecules before they were both arrested by the intergalactic police for illegal genetic experimentation. At first, this glitch causes Stitch to revert to his old destructive programming, but it will ultimately destroy him if Jumba cannot create a fusion chamber before Stitch's energy runs out.

Lilo and Stitch still do not have a theme for the upcoming competition. Lilo decides to study the places visited by Elvis on his trip to the Island to get some inspiration. This includes places like the laundry shop, the barber, a donuts and coffee shop, and finally a park bench overlooking the ocean. Lilo and Stitch try to be inspired for their hula, but Stitch keeps malfunctioning because of his molecules.

Stitch's uncontrollable destructive behavior is driving a wedge between him and Lilo and ruining her chances for success at the hula competition. Because Lilo is so concerned about winning the competition she fails to notice his glitch and does not understand that the trouble he is causing now is not his fault. She is too busy trying to get him to help her and completely neglects helping him.

Elsewhere, Nani's on-and-off boyfriend, David (Jason Scott Lee), believes Nani is losing interest in him, so Pleakley comes to his aid and tries to give advice on romance. Pleakley says that Nani would notice David more if she saw that another woman is interested in him. But this backfires when Nani sees right through Pleakley's disguise of a woman.

Eventually, the two devise a hula based on the legend of Hi'Iaka who brought her lover back to life with the power of her love, when he was thrown into a volcano by a jealous goddess. Lilo gets increasingly angry at Stitch as he ruins their practice sessions due to his glitches. Due to his latest outburst in front of Kumu, Lili and Stitch are barred from practicing at Kumu's Halau again. Lilo complains to Nani that Stitch's goodness levels are at rock bottom.

Stitch overhears this and decides to overcompensate. He carries out a series of good deeds such as helping old people cross the road, putting discarded hair on bald men, applying sun cream on beach goers, returning a baby bird to her nest and feeding her worms, building a huge sandcastle for a little girl on the beach, and so on. Stitch is convinced that he has topped off his goodness levels and goes back to Lilo.

To make matters worse Jumba is having problems creating the fusion chamber due to the fact that he does not have the proper alien technology to build it and has to try building it using ordinary house-hold objects. Jumba gets Pleakley to steal the appliances from Nani's home to build his fusion chamber.

Just before the competition, Lilo and Stitch make-up and Jumba finally completes the fusion chamber. Lilo tells Stitch that she is giving him a final chance. But then Stitch has another fit and he ends up shredding Lilo's mask that she was going to use for the performance. Lilo declares that Stitch is bad and will always be bad.

On the day of the competition, Stitch arrives just before Lilo is to perform, wishing her luck. When Stitch has another abrupt fit, Lilo, confused, tries to ask Stitch if he is okay, but he accidentally scratches her face like in his nightmare. Knowing that Stitch would never want to intentionally hurt her, Lilo finally realizes that something is wrong with him and tries to ask, but Stitch, greatly horrified and remorseful, runs off to leave Earth, as he believes himself to be too dangerous. In the middle of her performance, Lilo ultimately forfeits the competition and runs off to help Stitch and learns that he is malfunctioning.

As Stitch attempts to leave Earth, Lilo and the rest of the family desperately try to get him back so that they could re-charge him. Stitch then has another outburst which causes him to crash the spaceship in the Hawaiian mountains, Lilo rides over to the crash site in a mini space scooter, she finds Stitch close to death and struggles to get him into Jumba's fusion chamber. Unfortunately, she is too late by the time she places him in the machine and Stitch dies.

When a disheartened Jumba takes Stitch out of the chamber, Lilo holds him close and softly apologizes for her treatment of him, having finally understood that while she kept saying that she needed him, he needed her more. She says that he is her Ohana and, therefore, will always love him and breaks down in tears.

Everyone grieves for a time as Lilo weeps, but Stitch eventually awakens, much to everyone's happiness. Pleakley is at a loss for words, to which Jumba explains what happened: Stitch was revived by Lilo's love. Later that night, the family (along with David) performs Lilo's hula dance on the empty stage, and Nani tells Lilo that their mother would be proud of her, and a star twinkles in the sky to justify.