In a mockumentary, northern rockhopper penguin Cody Maverick, living in Shiverpool, Antarctica, with his mother Edna and his older brother Glen, has yearned to be a professional surfer ever since meeting the famous surfer Big Z many years ago, so when a talent scout shorebird named Michael Abromowitz arrives to find entrants for the Big Z Memorial surfing contest on Pen-Gu Island, Cody jumps at the chance. En route to the contest, Cody befriends another entrant, Chicken Joe, a nice, but dim-witted rooster surfer from Sheboygan, Wisconsin.
The entrants arrive at Pen-Gu Island, where Cody meets and immediately falls in love with Lani Aliikai, a female gentoo penguin who is a lifeguard. He also meets the contest's arrogant champion, Tank "The Shredder" Evans, who has won the Big Z Memorial nine times since it was first held after Z's presumed death during a previous match ten years ago. Cody sees Tank vandalizing Big Z's memorial and immediately challenges him to a surfing duel. Tank wins the duel while Cody nearly drowns and is stung by a sea urchin named Ivan. Lani rescues him and takes him to her uncle, "Geek", to help Cody recover from his injuries. Cody wakes up, but cannot find the souvenir necklace given to him by Big Z. Geek then finds it in his hut.