The second installment in the Spy Kids film series, which began with 2001's Spy Kids, the film had its world premiere screening on July 28, 2002 at the Grauman's Chinese Theatre in Hollywood, California. Shortly after that, the film was theatrically released on August 7, 2002 by Dimension Films. Upon release, Spy Kids 2 received mostly positive reviews from critics and grossed over $119 million worldwide.
The OSS now has a full child spy section, of which 13-year-old Carmen Cortez and 10-year-old Juni Cortez have become agents. Even though they were the first of the new Spy Kids Division, they were not considered the top spy kids, and soon they face particularly difficult competition with Gary and Gerti Giggles, the children of double-dealing agent Donnagon Giggles, whom Carmen and Juni helped to rescue in the previous film. It is shown that Carmen defends Gary, and has a crush on him, which strains her relationship with Juni.
After an incident at a local amusement park owned by Dinky Winks where the President's daughter Alexandra deliberately sabotages a thrill ride which juggles its passenger, forcing the Giggles and the Cortez kids to compete in the rescue. Donnagon, who has somehow hacked into the teleprompter which the President was reading from, is named the director of the OSS. Juni is fired after being framed by Gary (who was actually to blame) for losing the "Transmooker," a highly coveted device which can shut off all electronic devices. In his new position as director, Donnagon can carry on with his plan to steal the Transmooker, so he can rule the world.
Carmen manages to hack into the database, and reinstates Juni's level as an agent. She and Juni use some hints from Alexander Minion, and follow the trail to a mysterious island near Madagascar, which is home to Romero, a lunatic scientist. Romero has been attempting to create genetically-miniaturized animals, so he can make a profit by selling the animals to kids in "miniature zoos." He had an experiment go wrong after accidentally pouring growth concoction onto the mutated set of animals, as a result, he is unwilling to leave his lab, out of fear of being eaten. When Carmen is captured by a Spork, a breed of flying pigs, she meets Gerti, who reveals to her that Gary is actually evil. Carmen changes her feelings for Gary after he tries to kill Juni, and she sides with her brother. Meanwhile, Romero finds out that his creatures are much friendlier than he thought. After fighting pirate skeletons (that came alive after Juni stole a necklace from them), Carmen and Juni, along with the help of their family (who came to the island when they heard their kids were missing), Gerti, Romero and his creatures, destroy the Transmooker, and defeat Donnagon and Gary. Afterwards, Gregorio and Donnagon fight each other, as Gregorio put it, "the old-fashioned way."
Donnagon is fired by the President and his daughter; Gary is temporarily disavowed, and Gregorio is appointed director of the OSS by Alexandra on her father's behalf, while Juni resigns due to the impersonal treatment he had received by agents of the OSS, after being framed. As the Cortez family leaves the island, Romero gives Juni a miniature spider-monkey as a gift, and all the island's inhabitants bid farewell to the Cortez family.
During the credits, Machete has Carmen sing as an undercover pop star in a concert. Carmen says she cannot sing so Machete gives her a microphone which auto-tunes her voice, and a belt that helps her dance. He also gives Juni a guitar that plays itself. After the performance, Carmen asks Machete, "What, are you surprised your gadgets work?" Machete then tells Carmen, "I just realized, I never put any batteries in this." Carmen is shocked to find out she can, in fact, sing without auto-tune. As the credits come to a close, Dinky Winks paddles to Romero's island to strike up a business deal.
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