A documentary crew follows the events of Cody Maverick (voice of Shia LaBeouf) a small rockhopper penguin residing in Shiverpool, Antarctica (a pun on Liverpool, England). After a visit from surf legend Zeke "Big Z" Topanga (voice of Jeff Bridges), young Cody aspires to emulate the renowned legend by becoming a famous and respected surfer.

Eventually, talent scout Mikey Abromowitz (voice of Mario Cantone), arrives in Shiverpool to look for surfers to compete in the Big Z Memorial Surf Contest. Cody joins the group and befriends Chicken Joe (voice of Jon Heder), an easy-going surfer from Wisconsin. Upon arrival, Cody has an altercation with the egotistical Tank "The Shredder" Evans (Diedrich Bader), a large muscular penguin and nine time winner of the Big Z Competition when he witnesses him hurling stones at Big Z's memorial shrine. Tank challenges Cody to a surf-off on the spot and Cody's arrogance leads to a terrible wipeout. A kind lifeguard named Lani Aliikai (voice of Zooey Deschanel) takes an injured Cody to the hidden home of Geek, a hermit, in order to help Cody recuperate from his fall.