In the quaint English countryside, a mischievous and adventurous rabbit named Peter, along with his three sisters Flopsy, Mopsy, and Cotton-Tail, and their cousin Benjamin, spend their days pilfering vegetables from the garden of the grumpy and cantankerous Mr. McGregor. Their routine of theft and mischief is a source of constant irritation for the elderly McGregor, who does his best to guard his garden from the persistent rabbits. When Mr. McGregor's ongoing battle with Peter and his family takes a turn, the garden and the McGregor house are left unattended, creating a power vacuum in the local animal community.

Seizing the opportunity, Peter and his family claim the deserted garden as their own, delighting in the abundant crops and the freedom of the house. The animals' celebrations are short-lived, however, as the arrival of McGregor's tidy and uptight great-nephew, who inherits the property, leads to a bitter rivalry. The new McGregor shares his predecessor's distaste for rabbits and proves to be equally determined to keep them out of the garden, utilizing more sophisticated and intense methods. As the conflict escalates, Peter is forced to go beyond his mischievous ways to protect his family and their home, challenging his own ingenuity and the bonds of his family and friends.