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Alan-a-Dale introduces the story of Robin Hood and Little John, two outlaws living in Sherwood Forest, where they rob from the rich and give to the poor townsfolk of Nottingham, despite the efforts of the Sheriff of Nottingham to stop them. One day, Petra crash lands in their tree and makes friends with them, along with Hubie, Marina, Rocko, Beanie, Timmy, Pikatwo, Bonkers, Fawn and their new member, Buck.
Meanwhile, Prince John and his assistant Sir Hiss arrive in Nottingham on a tour of the kingdom, along with Drake who is more determined to catch Marina then ever since the failed deal he made to Alamada Slim.
Knowing the royal coach is laden with riches, Robin, Little John, Hubie, Marina and their friends rob Prince John by disguising themselves as fortune tellers. The robbery is difficult as Marina tries to make sure that Drake doesn't recognise her.
The embarrassed Prince John then puts a bounty on their heads and makes the Sheriff his personal tax collector, who takes pleasure in collecting funds from the townsfolk including hidden money from the crippled blacksmith Otto and a single farthing from a young rabbit, Skippy, who had just received it as a birthday present. However, Robin Hood and Hubie disguised as beggars, sneaks in along with Petra, Beanie, Timmy and Pikatwo and gives back some money to the family, as well as his hat and a bow to Skippy in honor of his birthday.
Skippy and his friends and Petra, Beanie, Timmy and Pikatwo test out the bow, but Skippy fires an arrow into the grounds of Maid Marian's castle. The children and the clone sneak inside, meeting Maid Marian and her attendant Lady Kluck. Maid Marian reveals she and Robin were childhood sweethearts but they have not seen one another for years.
Meanwhile, Friar Tuck visits Robin, Little John, Hubie and their friends explaining that Prince John is hosting an archery tournament, and the winner will receive a kiss from Maid Marian. Robin decides to participate in the tournament disguised as a stork whilst Little John disguises himself as the Duke of Chutney to get near Prince John. Hubie and Rocko disguise themselves as his servants to fool Drake, while Marina dresses as a peasant and waits with the bird kids and Pikatwo in the crowd.
Sir Hiss discovers Robin's identity but is trapped in a barrel of ale by Bonkers (who hates snakes), Fawn and Buck. Robin wins the tournament, but Prince John exposes him and has him arrested along with Hubie and Rocko for execution despite Maid Marian and Marina's pleas. Little John and Pikatwo threaten Prince John with thundershocks in order to release Robin, which leads to a fight between Prince John's soldiers and the townsfolk, all of which escape to Sherwood Forest.
As Robin and Maid Marian fall in love again, the townsfolk, Hubie and his friends mock Prince John, describing him as the "Phony King of England". Enraged by the insult, Prince John triples the taxes, imprisoning most of the townsfolk who cannot pay. Marina and Pikatwo visit Friar Tuck's church to give their last farthing for the poor box only to have the Sheriff burst in and steal it. Friar Tuck protests and Pikatwo, enraged that the Sheriff has no heart, thundershocks him over and over. the Sheriff arrests both him and Friar Tuck for high treason. Prince John plans with Drake to execute Friar Tuck and Pikatwo, giving him the chance to capture Robin Hood and kill Hubie they come to rescue Friar Tuck and Pikatwo. With Hubie out of the way, Marina will have no choice but to marry Drake.
Robin, Little John, Hubie and all his friends sneak in, with Little John, Marina, the bird kids, Fawn and Buck managing to free all of the prisoners whilst Robin, Hubie, Rocko and Bonkers steal Prince John's taxes, but Sir Hiss awakens to find them fleeing. Chaos follows as Robin, Hubie and the others try to escape to Sherwood Forest. The Sheriff corners Robin and Rocko after they're forced to return to rescue Tagalong. During the chase, Prince John's castle catches fire and forces a trapped Robin Hood and Rocko to leap from a tower into the moat below. Since there is no wind, Rocko is unable to fly.
Little John and Skippy fear Robin is lost, while Hubie and the others grieve for Rocko. but Robin surfaces safely after using a reed as a breathing tube. Rocko emerges right behind, stating 'No one takes down Rocko the Rockhopper' Prince John and Drake are driven into a blind rage.
Later, King Richard returns to England, placing his brother, Sir Hiss and the Sheriff under arrest and allows his niece Maid Marian to marry Robin Hood, turning the former outlaw into an in-law.
Drake is forced to work in the manure heap, but not before Marina punches him in the face, much to Hubie's delight.