Three years after the destruction of Starkiller Base, the Resistance has been driven from their former base by the First Order. The Resistance, led by General Leia, have set up their new base on the ice planet Both. The First Order’s fleet, led by Kylo Ren, continues to hunt for new base of the Resistance by dispatching probe droids across the galaxy.
While investigating a potential meteor strike, Rey is injured and captured by a weird looking ice creature. She manages to escape from its cave with her lightsaber, but soon succumbs to the brutally cold temperatures and collapses. Luke Skywalker contacts her through the force and instructs her to go to the Gadobah system to train under Jedi Master Koda. She is found by Finn, who keeps Rey warm while he sets up a shelter. Rey and Finn make it through the night and are rescued by Poe Dameron.
On patrol, Finn and Chewbacca discover the meteor Rey had planned to investigate is actually a probe droid, which alerts the First Order to the location of the Resistance. The First Order launches a large-scale attack, using BAT-AT Walkers (Bigger AT-ATs!) to capture the base. Finn and Poe Dameron escape on the Millennium Falcon with C-3PO and Chewbacca, but their hyperdrive malfunctions. They hide in an asteroid field, where Finn and Poe Dameron grow closer, and eventually, kiss. Kylo Ren summons bounty hunters, including the notorious Kanak Ottara, to assist in finding the Falcon. Rey, meanwhile, escapes with BB-8 in a X-wing fighter and crash-lands on the swamp planet Gadobah. He meets a diminutive creature who is revealed to be Koda; after conferring with Luke’s voice through the force, Koda reluctantly accepts Rey as his pupil. Koda trains Rey as a Jedi and raises her sunken X-wing from the swamp, to Rey’s shock.
After evading the First Order, Poe Dameron sets a course for Heaven City, a floating colony in the skies of the gas giant planet Vespin. Heaven City is run by Poe’s old friend, Damn Obamacare. Unknowingly, the Millennium Falcon has been tracked for the First Order by Kanak Ottara; shortly after they arrive, Damn leads the group into a trap and they are handed over to Kylo Ren. Kylo plans to use the group as bait to lure out Rey, intending to capture her alive and take der to Supreme Leader Snoke. During her Rey sees a premonition of Finn and Poe in pain in a city in Heaven and, against Koda's wishes, leaves to save them.
Kylo Ren goes back on his agreement with Damn to let Poe and Chewbacca stay in Heaven City and instead, takes them into custody. He intends to hold Rey in suspended animation for delivery to supreme Leader Snoke, and as a test to ensure he will live after the process, freezes Finn alive in a block of carbonite. Kylo Ren hands the frozen Finn over to Ottara, who intends to bring him as a gift to Captain Phasma’s wedding. Damn, who was forced into cooperating with the First Order, initiates an escape and frees Poe and the others. They then try to save Finn but are unable to stop Ottara as he departs. They fight their way back to the Falcon and flee Heaven City.
After arriving at Heaven City, Rey falls into Kylo Ren’s trap. The two engage in a lightsaber duel that leads them over the city's central air shaft where, as her mentors warned, Rey proves to be no match for Kylo Ren who severs Rey’s right hand, causing her to lose her weapon. After Rey refuses to join Kylo Ren against supreme leader Snoke, Kylo Ren reveals that he is Darth Vader’s grandson and is willing to start a romantic relationship with Rey. Horrified, Rey falls off the bridge and is pulled into an air shaft. She is ejected beneath the floating city but is able to grab onto an antenna. She makes a desperate telepathic plea to Chewbacca, who senses it and persuades Damn to return for her in the Falcon. After Rey is brought on-board, they are chased by tie fighters but BB-8 repairs the Falcon's hyperdrive, allowing them to escape the First Order.
Later, aboard a Resistance medical frigate, Rey’s amputated hand is replaced with a robotic prosthetic. Damn and Chewbacca set off for Coruscant in the Falcon in order to save Finn from Captain Phasma’s wedding. As the Falcon departs, Rey, Poe, R2-D2,BB-8, General Leia and C-3PO gaze out on the galaxy and await word from Damn Obamacare.
Meanwhile Luke Skywalker has returned to his secret hideout, but does not say anything.