School nurse Alice Goodwin lives with her husband and two daughters on a dairy farm in a small Wisconsin community. After an accident on her property involving a friend's child, the town turns against her and Alice finds herself fighting charges of child abuse.
Babe, fresh from his victory in the sheepherding contest, returns to Farmer Hoggett's farm, but after Farmer Hoggett is injured and unable to work, Babe has to go to the big city to save the farm.
Babe is a little pig who doesn't quite know his place in the world. With a bunch of odd friends, like Ferdinand the duck who thinks he is a rooster and Fly the dog he calls mum, Babe realises that he has the makings to become the greatest sheep pig of all time, and Farmer Hogget knows it. With the help of the sheep dogs, Babe learns that a pig can be anything that he wants to be.