The plot returns to Rydell High School two years after the original film's graduation, with a largely new cast, led by Maxwell Caulfield and Michelle Pfeiffer in her first starring role.

Despite breakthrough roles for Pfeiffer, Adrian Zmed, and Christopher McDonald, the film received mostly negative reviews from critics; however, Grease 2 maintains a devoted fan base decades after its release.

[3] It is 1961, three years after the events of the prior film, and the first day of school has arrived ("Alma Mater" from the original stage musical).

The Pink Ladies are now led by Stephanie Zinone, who feels she has "outgrown" her relationship with her ex-boyfriend Johnny Nogerelli, the arrogant, chauvinistic (and rather immature) bully leader of the motorcycle-riding T-Birds.

A new arrival comes in the form of clean-cut British student Michael Carrington (a cousin of Sandy Olsson from the previous film).

Frenchy has returned to Rydell to obtain her diploma so she can start her own cosmetics company (as preluded with “Beauty School Dropout” in the previous film).

At the local bowling alley, a game ("Score Tonight") turns sour from the animosity between Johnny and Stephanie.

Michael begins to covertly accept payments from the T-Birds to write their term papers and uses the cash to buy a motorcycle.

A rival gang called the Cycle Lords (including members of the defunct Scorpions), led by Leo Balmudo, surprises the T-Birds at the bowling alley.

Before a fight ensues, a lone, mysterious “Cool Rider” biker appears (actually Michael, in disguise), defeats the enemy gang, and disappears into the night ("Who's That Guy?").

Meanwhile, T-Bird Louis attempts to trick his sweetheart, Pink Lady Sharon, into losing her virginity to him by taking her to a fallout shelter and faking a nuclear attack ("Let's Do It for Our Country").

The next evening while working at a gas station/auto garage, Stephanie is surprised again by the Cool Rider, and they enjoy a romantic twilight motorcycle ride, which includes a kiss.

They chase him to a construction site which conceals a deadly drop, and the biker's absence suggests that he has gone over the edge and perished, leaving Stephanie heartbroken and inconsolable.

During the Pink Ladies' performance in the talent show ("Girl for All Seasons"), Stephanie enters a dreamlike, fantasy world, where she is reunited with her mystery biker ("(Love Will) Turn Back the Hands of Time").

She is named winner of the contest, and crowned the Queen of the upcoming graduation luau; likewise, Johnny is hailed as King for his performance of "Prowlin'", along with his fellow T-Birds.

Initially shocked, Johnny gives him a T-Birds jacket, officially welcoming him into the gang, and Stephanie is delighted that she can now be with him.

Grease co-producer Allan Carr had a deal with Paramount Pictures to be paid $5 million to produce a sequel, with production beginning within three years of the original film.

Carr decided to hire Patricia Birch as director for the sequel, as she had previously served as the choreographer for the stage and film versions of Grease.

Birch was initially hesitant to accept after learning that neither composers Jim Jacobs and Warren Casey nor John Travolta and Olivia Newton-John would be involved in the film.

[9] Maxwell Caulfield was unhappy with the film's "drab" title, and unsuccessfully lobbied to change it to Son of Grease.

But they didn’t consider him sexy enough.”[16] Maxwell Caulfield was cast after impressing producers off-Broadway in Entertaining Mr. Sloane.

Other actresses considered for the part included Lisa Hartman, Kristy McNichol, Andrea McArdle, and singer Pat Benatar.

[20] Pfeiffer was a wild card choice, but according to Birch, she won the part because she "has a quirky quality you don't expect.

[23] The part played by Connie Stevens was originally meant for Annette Funicello but she was unable to appear because her schedule as Skippy peanut butter spokeswoman[24] did not allow her time to film the scene.

The site's consensus read: "Grease 2 is undeniably stocked with solid songs and well-choreographed dance sequences, but there's no getting around the fact that it's a blatant retread of its far more entertaining predecessor.

[33] Janet Maslin of The New York Times condemned the film as "dizzy and slight, with an even more negligible plot than its predecessor had.

"[34] Variety commended the staging of the musical numbers, writing that Patricia Birch has come up with some unusual settings (a bowling alley, a bomb shelter) for some of the scenes, and employs some sharp montage to give most of the songs and dances a fair amount of punch.

In 2019, it was announced that a prequel to the original film entitled Summer Lovin' with John August attached to write the screenplay was in the works at Paramount.