Los Angeles rap artists Postmaster P. (Anthony Montgomery), Stray Bullet (Rashaan Nall) and Butch (Red Grant) accidentally free a Leprechaun that was imprisoned by record producer Mac Daddy O'Nassas (Ice-T) 20 years earlier. The Leprechaun hunts the friends in order to recover his magic flute, which places listeners of its tune in a euphoric trance. After killing some people, such as a reverend, DJ artists, and a hot girl, the Leprechaun reaches the three friends at Postmaster P.'s home. When the rap artists and the Leprechaun engage in a fight, the Leprechaun kills Stray Bullet by making him shoot himself in the mouth with his own pistol while Postmaster P. and Butch stare in horror. Butch visits Postmaster P. at his grandma's house and convinces him to use a joint laced with four-leaf clovers to strip the Leprechaun of his powers in order to steal back the flute.
Postmaster P. and Butch then visit the club in which the Leprechaun has taken up residence. In order to gain entry they dress in drag. Postmaster P then disenchants the Zombie Fly Girls[clarification needed] by having them smoke one of the joints laced with clovers. The duo then goes upstairs to find the Leprechaun who wants the dragged up Postmaster P. to give him a blowjob. Before proceeding any further, the Leprechaun smokes the clover laced joint and passes out. The rap artists take the flute and head downstairs where Mac Daddy shoots Butch, killing him. Postmaster P. retaliates by shooting Mac Daddy three times. No longer under the effects of clover, the Leprechaun comes downstairs and uses magic to pin Postmaster P. against a girder. Postmaster P. then distracts the Leprechaun, allowing the bullet-ridden Mac Daddy to hit the Leprechaun with a wooden chair. Immediately, the Leprechaun uses magic to explode Mac Daddy's torso, but with the last of his strength, Mac Daddy throws the magic amulet in the air.
Cut to a dark stage with much fog and a silhouetted Postmaster P. rapping about how he's finally made it. He moves to the forefront where his eyes are hidden behind sunglasses. He removes the sunglasses to show that his irises glow a neon green, which indicates that he is under the Leprechaun's spell. The camera pans to the front row, in which the Leprechaun sits wearing the same glasses as Postmaster P.
The film ends with the Leprechaun rapping about being an evil Irish leprechaun.
- Warwick Davis as Leprechaun
- Ice-T as Mack Daddy O'Nassas
- Anthony Montgomery as Postmaster P. Smith
- Rashaan Nall as Stray Bullet
- Red Grant as Butch
- Dan Martin as Jackie Dee
- Lobo Sebastian as Fontaine Rivera
- Ivory Ocean as Reverend Hanson
- Coolio as Himself
- Daya Vaidya as Waitress #1
- Chloe Hunter as Waitress #2
- Lori J. Jones as Waitress #3
- Wes Craven as Jesus
The film received a negative critical reception, and currently holds a 33% approval rating, the highest for any film in the series, on review aggregator website Rotten Tomatoes, based on six reviews. Nathan Rabin of The A.V. Club wrote that a hip-hop themed sequel in the film series was "inevitable" and the result is "intermittently amusing". Mike Flaherty of Entertainment Weekly rated it B+ and wrote, "Bloody, broad, and comically brutal, it's blaxploitation at its best." Kevin Archibald of IGN rated it 6/10 stars and called it "really dumb, but entertaining". Scott Weinberg of eFilmCritic rated it 1/5 stars and wrote, "There’s simply nothing to recommend here even a little."
E! Online ranked it eighth in their Top 10 High-Larious Stoner Movies.
Warwick Davis was nominated for the Video Business Video Premiere Award for best actor in a direct-to-video release.