After the destruction of Virtual Space Industries at the end of the first film, Jobe is discovered in the rubble and is brought to the facilities of Jonathan Walker (Kevin Conway), a powerful corporate tycoon, where his face is reconstructed and he is hooked back online through virtual reality to work for Walker. Several years later, in a dystopian Los Angeles, Peter Parkette (Austin O'Brien), is now a teenager and a computer hacker living in the subways with a group of runaway teenagers after the events of the first film. Jobe finds Peter online and asks him to find Benjamin Trace (Patrick Bergin), the founder of virtual reality. After finding Trace and bringing him to his hideout, Peter discovers Jobe is looking to start a new world order, using Walker's technology. Now, Trace, Peter, Trace's former lover Cori (Ely Pouget), and Peter's friends, are on a race against time to stop Jobe and Walker from enslaving humanity through virtual reality.