One day, when Rob's parents become endangered by a falling boulder, he sprints toward them and changes into a striped and star-spangled superhero on golden rollerskates.

An irritated Walt orders the Jackals to kidnap a gorilla (Lorenzo Music) named Ping Pong and turn him against the American Rabbit.

They take him to a secret lair in the Grand Canyon and threaten to drown him unless he fights the American Rabbit for them, but Rob discovers that Ping Pong is missing.

He sends Teddy, Bunny, and the White Brothers rafting down the river and is captured by the Jackals, but manages to turn into the American Rabbit and rescue Ping Pong.

Perching on the detonator for the dynamite, he forces the American Rabbit to fly around the Statue of Liberty and deliver an announcement to the public: Vultor and the Jackals are in total control of the city, those who oppose them will be killed, and those who obey them will be rewarded with chocolate.

However, the people turn on the Jackals when they fail to keep their promises and maintain order, and Teddy, Bunny, Ping Pong, and the White Brothers free the moose and his son.

Vultor curses the Jackals, dismissing them as traitors when they tell him how frustrated the people are, and swears to destroy the American Rabbit (and the city) with his doomsday switch.

The taxi driver turns out to be the elderly rabbit from the beginning of the film, who offers Rob some advice: "You can't win 'em all, but you can make a power play of your own."

An American/Japanese co-production between Murakami-Wolf-Swenson (now Fred Wolf Films Dublin) and Toei Animation, The Adventures of the American Rabbit was based upon the poster character of the same name created by pop artist Stewart Moskowitz.

Charles Solomon of the Los Angeles Times said, "Both the writing and the animation in The Adventures of the American Rabbit are so inept that the viewer expects the governor to interrupt the film and declare the theater a disaster area!