It has been a year since the event of the first movie, and the OSS now has a dedicated section for child spies. Carmen and Juni are the head spies of the new section, but they face stiff competition from Gary and Gerti Giggles, the children of double agent Donnagon Giggles whom they had saved in the first film. After Donnagon's daughter sabotages an amusement park ride and hacks a teleprompter when the OSS president tries to speak, Juni is framed for stealing the transmooker, a device which can control all the word's electronic devices, Juni is framed by Gary and is fired. Donnagon is then made the OSS president. After Carmen decides to secretly reinstate Juni, the two go to a hidden island off the coast of Madagascar, where they find that Donnagon has hired a mad scientist by the name of Romero who plans to use the transmooker to create genetically miniaturized animals to sell to kids for making a profit. Carmen soon learns of Gary's secret and she and Juni have to try and stop him.