The film begins 4 years after the events of the first one, with George Banks telling the audience he is ready for the empty nest he'll shortly receive with all of his children grown up. Shortly thereafter, Annie tells the family that she's pregnant, and George begins to mildly panic, insisting he is too young to be a grandfather. He has his assistant make a list of people who are older than him, dyes his hair brown, and decides he and Nina should sell the home their children have grown up in if one more thing goes wrong with it. Termites strike the house two weeks later. George puts the house on the market without telling Nina, and sells it to the Habibs. At dinner, after a discussion on whether the baby's last name will be hyphenated or not, George reveals the house has been sold. Nina is livid, as she and George have to be out in 10 days and have no place to go. Having no place to go, the Banks stay at the mansion owned by Bryan's parents. As the MacKenzies are on a cruise in the Caribbean, the Banks have to deal with their vicious Dobermans, much to the chagrin of George, who is still obviously paranoid from a previous mishap with them. Nina begins experiencing symptoms that bring up the concern of menopause. After visiting the doctor the following day, they are given the opposite news: Nina is pregnant, too. Not long after, they have a chance meeting with Franck, Annie's wedding planner, who is elated at both women expecting. George switches gears, now believing he is too old to be a father again. His feelings come to a head when he and Nina go to Annie's and Bryan's house to announce their news. Nina brings his insensitivity to light and tells him not to come home. As an apology, George reluctantly hires Franck to do the baby shower. As they are driving home, Nina and George have differing perspectives on the prospect of becoming new parents again. Both express how strange it will be, but begin to welcome the change. One day when George is out, he notices that the street to their old house is blocked off and sees a demolition crew with a wrecking ball at the house and learns that Mr. Habib plans to demolish it. An upset George runs in and tries to stop them as the wrecking ball is about to slam into the house. He pleads with Mr. Habib not to tear down the house since he is going to be a father again, as there is great sentimental value to it. He realizes that if he's going to have another child, he wants to raise him/her in the house his family grew up in. When George offers to buy the house back, Habib agrees on the condition that George pay him $100,000 up front. Although reluctant to pay that money, he gives in when Mr. Habib is about to send in the wrecking ball. The Banks then move back into their house, right as Bryan is called away to an emergency meeting in Japan. Meanwhile, Nina and Annie are moving along in their simultaneous pregnancies and need around the clock care from George. Matty takes over when his father George is away at work. Franck turns simple redecoration of Nina and George's new baby's nursery into a full-scale renovation/addition, which he affectionately calls, 'the baby's suite'. Eventually, all the stress and nights of sleep deprivation wear George out. When 'the baby's suite' is revealed, Franck offers George some sleeping pills from his native country called 'Vatsnik' after George tells him that he has not been getting enough sleep. George unknowingly takes too high of a dosage and suddenly passes out during dinner. The family becomes worried, which is only increased when Annie finally goes into labor. Franck takes over the role of driving the family to the hospital with a barely coherent George in tow. After being mistaken for a patient in need of a prostate exam, George finally regains full consciousness and goes to see Nina and Annie when Nina goes into labor. George is initially cynical about the female obstetrician who fills in because their own is unavailable. Despite wanting his grandchild to be delivered by the same doctor who delivered his children, George comes to terms with the arrangement. Bryan soon returns to be with Annie, who gives birth to a baby boy, while Nina gives birth to a baby girl, named George and Megan respectively. George finishes telling the story about Nina and Annie's pregnancies. Bryan and Annie then move to Boston with baby George, since Annie took a job there. The film concludes with George standing on the road in front of his house, admiring it with Megan by his side. As he completes the story, he begins walking up the driveway, telling Megan about all the basketball tricks George will teach her.
In 1996, Meyers confirmed that she and Shyer were planning a third installment in the Father of the Bride series, which would "have their characters confronting serious problems in their relationship – but ending up with a stronger bond than ever" - though ultimately a sequel failed to materialize. In 2014, reports arose regarding a gay marriage themed Father of the Bride 3 emerged, reportedly again directed by Shyer, which was said to focus on a 29-year-old Matty Banks after he announces his engagement to the son of a US Navy Seal. Steve Martin denied the rumors on his social media, stating that he had neither seen a script, nor been offered the role.
