Odette and Derek are celebrating one year of marriage at Swan Lake, but Derek is distracted by a mysterious series of fires sweeping the kingdom. In fact they have been set by Knuckles, a henchman of the evil wizard Clavius, in an attempt to lure Derek outside so he can steal a magical orb hidden in the dungeon. Clavius kidnaps Derek's mother the Queen, Oddette is changed back into a swan again, and her animal friends from the first movie set out to foil Clavius.