Jim Varney's recurring dim-bulb character Ernest P. Worrell returns in this film as a school maintenance man seeking to obtain a high school diploma.

Two attractive young lesbians, Maggie and Kim, meet in Vancouver, develop a passionate romance, and move in together. Meanwhile, Maggie's well-meaning but naive mother Lila gets divorced and decides to move to Vancouver and join the household. Soon after, Lila is befriended by Judy, a transsexual about to undergo a sex-change operation. Complications ensue as the conservative Lila learns the truth about Maggie, Judy, and their diverse group of friends.