Shortly after Gru and Lucy catch a villain called the Falcon, they celebrate their victory. Gru is tempted to find out who the Falcon is, recognizing him from somewhere. The Falcon reveals to Gru that he is Bald Eagle, his father. He faked his death so he can start a new life of crime. Gru is convinced by the Falcon to let him out. However he rejects working with him. Angry at Gru the Falcon storms off stating he will prove that the bad guys can win. Meanwhile Margo, Edith and Agnes are inspired to become superheroes they find robbers at a bank. When they are about to try to take them down, Gru and Lucy do it instead, which angers the girls. No one notices the Falcon watching close behind. When all of them are sleeping, the Falcon's henchmen Gary and Sheila Tenderson, wakes up the girls and tells them they can work with him as henchmen. The girls realize that the henchmen are their parents. However they don't want to leave Gru. Seeing this as a problem the couple hypnotizes them, which makes them want to go with them and complete the Falcon's master plan. Gru and Lucy wake up and discover the girls aren't there. Gru goes to his brother Dru for help. As they look the Falcon and the girls release prisoners from jail. Recruiting them to be in their army. Soon enough the city is in chaos. The AVL come to help, but the Falcon places his hypnotizer on a phone wire. Making everyone become hypnotized to his plan, including Gru, Lucy and Dru. It has no effect on the minions, the minions start fighting with the army and successfully get to the Falcon and his machine. They turn it off and smash it freeing everybody. Gru runs to the Falcon, the Falcon has Agnes off the edge of the tower. Agnes deciding to be a hero kicks him and screams causing him to release her. Gru and Lucy apologize to the girls about what they said when they tried to be heroes. The Falcon in all of this gets up and blasts himself with his morph gadget. He changes himself and becomes a giant monster fire Falcon. He starts terrorizing the citizens. Soon enough he begins to make his way to AVL headquarters. As he is about to destroy the AVL, Bob the minion takes his morph gadget and makes himself as well as other minions a multi headed minion hydra. The Falcon battles with the minion hydra but is defeated when Margo, Edith, Agnes, Gary and Sheila morph him back to himself. Scared of the minion hydra the Falcon runs away. However Gru, Dru and Lucy set a series of traps for him causing him to be caught and arrested by the AVL. At the end, Dru decides that he must travel the world to conquer more challenges, he goes off to Hawaii. Gary and Sheila reunite with the girls, they decide to become the superheroes of the suburbs they live in. They offer to take the girls back, saying it was a hard time without them. The girls decide that they should stay with Gru because he needs them the most. Gary and Sheila say their goodbyes and go off into the distance, with Gru, Lucy and the girls tearfully watching. Afterwards Gru visits his father, telling him how he's sorry he ended up not what he wanted him to be. The Falcon (Gru's father) tells him his real name is Cornelius Gru. He discovers Gru was upset without him, he tells him he's sorry and he wants to start anew. Gru asks permission from the AVL. Where they gladly accept. Cornelius trains for his test mission to become an official AVL, he practices with Gru and the girls.The movie cuts to black as Cornelius is about to start his first mission against getting back money from the Bank of Evil.