It has been several months since Pooh and his friends returned from the Pride Lands, after helping Princess Kiara defeat Zira, her boyfriend's mother. The Hundred Acre Hood remains calm, except when Tigger argues with Rabbit or when Pooh steals the honey from the bees.
The calm disappears when Genie appears in the hood with a request: “The adventure is waiting for you. Don't you miss the adventure, the action, the drama?” Genie explains that a giant machine is on the loose. Anxious to get back to action (things have been very calm in Agrabah), Genie decided to summon all his friends from his latest adventures in the Pride Lands. He wants to gather all his friends to help hunt the machine that has caused some damage in the USA. At first, Pooh and his friends didn't want to go. "It must be dangerous." But, after thinking better, they ended up accepting the Genie's proposal. Or rather: Tigger accepted. "Come on guyd. It will be exdciting. It goed without endusiadm. Hoo hoo hoo!”
After everyone agreed, Genie guided the group on a magical plane to the meeting point, somewhere in Africa, where everyone else was gathered waiting for Genie, Pooh and friends. There are the vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice, Mort, Timon and Pumbaa, who already know many countries and the lionesses Kitako, Mkundu and Duba, who wants to meet new lands. "We are going to need a bigger plane." Genie expands the magical plane so that everyone can travel to Rockwell.
Once there, the huge group decides to separate to look for the iron giant. The vultures, Jiminy Cricket, King Julien, Maurice and Mort go one way. Timon, Pumbaa, the three lionesses, Genie and Pooh and his friends go the other way.
The group of vultures finds a soldier (Kent) who is looking for the giant. The vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice and Mort decide to help the soldier in his search. After all, the giant is dangerous and has to be destroyed.
The other group hears a noise and approaches the electrical substation, looking for the source of the noise. Once there, the group finds a kid (Hogarth) trying to free the iron giant from the wires where he is trapped. Genie uses his magic to free the giant. Timon, Pumbaa, the three lionesses, the Genie and Pooh and friends try to wake the giant. When he wakes up, he runs after the group, which is scared to think that the giant is bad. Finally, the iron giant stops in front of them and sits down, realizing that they are the ones who freed him from the electrical substation.
Meanwhile, Kent approaches the place, accompanied by the vultures, Jiminy Cricket, King Julien, Maurice and Mort. Maurice finds a toy gun by the damaged electrical substation and hands it to Kent.
Hogarth tries to take the giant to his home, accompanied by Timon, Pumbaa, Kitako, Mkundu and and Duba, Genie and Pooh and his friends. They cross a railway line, where the giant stops to eat the metal. The iron giant ends up being run over and falling divided in several parts. Genie prepares to use his magic to fix it, but it's not necessary. The giant repairs itself. Finally, everyone runs away, before anyone sees them.
Hogarth hides the giant in the barn while he goes home. His new friends are watching the giant. Inside the house, Hogarth discovers that a giant piece is on the loose and tries to hide the piece from his mother. Kent comes to Hogarth's house to ask him some questions, along with the vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice and Mort. With great care, Hogarth manages to get the giant's piece out of the house, without the others realizing it.
Later, in the barn, Hogarth reads a Superman comic for the giant and his new friends.
The next day, Hogarth, Timon, Pumbaa, the lionesses Kitako, Mkundu and Duba, Genie and Pooh and friends take the giant to the junkyard, where they convince Dean, Hogarth's friend, to let the giant stay there.
In the days that followed, Hogarth, Dean, Timon, Pumbaa, the lionesses Kitako, Mkundu and Duba, Genie and Pooh and his friends have fun with the giant, diving into the lake and playing superheroes.
Kent, the vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice and Mort try to get information from Hogarth, who never reveals anything.
Finally, Kent finds out where the giant is and summons other soldiers to go to the junkyard to destroy the giant. Hogarth, Timon, Pumbaa, the lionesses Kitako, Mkundu and Duba, Genie and Pooh and his friends help the giant to disguise himself as a statue, making Kent and his new partners look crazy.
After the enemies are gone, Hogarth and his new friends return to play with the giant. Halfway through the game, the iron giant reacts to a toy gun and attacks Hogarth. Repentant and frightened, the giant decides to go away. In the distance, a vulture sees the giant and warns Kent.
Hogarth, Dean, Timon, Pumbaa, the three lionesses, Genie and Pooh and friends look for the giant, worried. The giant watches two children fall from a roof and runs to save them. The inhabitants look at him with admiration. Hogarth goes to the giant, while Kent arrives there with more soldiers and attacks the giant.
The vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice and Mort are scared and start to think it was a bad idea to join Kent.
In the middle of the shooting, the vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice and Mort try to hide, until they find Timon, Pumbaa, the three lionesses (Kitako, Mkundu and Duba), Genie and Pooh and friends. Everyone hides in a narrow street and talks. Timon, Pumbaa, the three lionesses (Kitako, Mkundu and Duba), Genie and Pooh and his friends explain to the others that the iron giant is friendly and doesn't want to hurt anyone.
However, the Giant is attacked and tries to protect Hogarth, who passes out. Irritated by thinking that his friend has died, the giant activate his combat mode and attacks the soldiers with maximum power.
Hogarth's mother, along with Dean, the vultures (Buzzie, Flaps, Dizzy and Ziggy), Jiminy Cricket, King Julien, Maurice, Mort, Timon, Pumbaa, the lionesses Kitako, Mkundu and Duba, Genie and Pooh and his friends go watch the wounded friend. When awake, Hogarth asks to return to the village. And so it is.
After a great rain of shots, the giant calms down again, thanks to the words of Hogarth. However, Kent activates a missile that can destroy the entire village. Everyone embraces with family and friends, waiting for the end. The same for the vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice, Mort, Timon, Pumbaa, the lionesses Kitako, Mkundu and Duba, Genie and Pooh.
Its then that the iron giant decides to sacrifice himself. The giant flies towards the missile, acting like a real Superman.
Days later, the vultures (Buzzie, Flaps, Dizzy, and Ziggy), Jiminy Cricket, King Julien, Maurice, Mort, Timon, Pumbaa, the lionesses Kitako, Mkundu and Duba, Genie and Pooh and his friends say goddbye to Dean, Hogarth and his mom.
The Genie uses his magic to take all his friends home. The last ones to come home are Pooh and his friends. "It was very exciting." Eeyore says with his usual dismay. "I th-think we won't be on ad-adventures anytime soon." Says Piglet. "It will be faster than you think." Genie hints. "What do you mean?!" Instead of answering Rabbit's question, Genie quickly disappears with his magic.
That night, at Rockwell, Hogarth hears a noise. It's the giant's piece, which he has kept in his room, that is moving. He drops the piece that goes out the window, looking for something. It's the Iron Giant that is being rebuilt. After all, maybe this story really has a happy ending.