All Dogs Go to Heaven 2 is the 1996 sequel to the 1989 Don Bluth film All Dogs Go to Heaven. However, Bluth, himself, had no actual involvement with this movie. Unlike its predecessor, elements in this movie were reduced, with depictions of gambling and death omitted, as well as not having Charlie as a traitor to David like he was to Anne-Marie.
Many years after the first film, sometimes in the 1990s, Charlie Barkin remains in Heaven as an angel and waits for the new dogs to arrive in Heaven, one of whom being Charlie's best friend, Itchy Itchiford, who died while choking to death on a chicken drumstick. Charlie welcomes Itchy into heaven and shows him around, but reveals that he's been bored in Heaven since his death (It's Too Heavenly Here) and wishes to return to Earth. Then Charlie's old nemesis, Carface Carruthers, secretly steals Gabrielle's Horn and causes it to fall from Heaven to Earth, and Carface secretly escapes from Heaven to Earth. Annabelle, the Head Angel, sends Charlie and Itchy to Earth to retreive the horn and gives them one miracle to use while on Earth.
Once on Earth, Charlie and Itchy arrive in San Francisco and Charlie begins exploring a dog tavern, where he notices a singing Irish Setter dog named Sasha La Fleur and falls in love with her. He tries to get her to notice him, but she can't see nor hear him because he's a ghost. Then Charlie spots Carface with a red collar around his neck that makes him visible. He tells them he got the collar from a dog named Red, who would probably be happy to give some to Charlie and Itchy as well. They follow him to Red's place, where Carface introduces them to Red, who gives them each a collar, making them both visible, though he tells them the collars will only work until sundown tomorrow and then they will be ghosts again. After Charlie and Itchy leave, it is revealed that Red is actually a cat/devil disguised as a dog and hired Carface to steal Gabrielle's Horn so he can imprison all dogs from Heaven and rule the world.
Charlie and Itchy meet Sasha and a human boy, David, who ran away from home to become a street performer, the former leading him to believe that he is his guardian angel. Before leaving for "Easy Street", Charlie uses his miracle in the form of a passionate kiss (which Sasha does not take kindly to) to grant Sasha the ability to converse with David. Upon seeing the horn being taken into a police station, they retrieve it, with Carface failing to steal it from them. Refusing to return to Heaven, Charlie conceals it in a lobster trap. On Easy Street, they entertain an audience with magic tricks, but a rainstorm and David falling into a fountain ruins the act. He thereafter reveals his belief that his father and stepmother, who are expecting a new baby, will care less for him once it's born; but is persuaded otherwise by Charlie. As Charlie and Sasha embrace, his collar vanishes, and he and Itchy become ghosts again.
Carface then kidnaps David and demands that Charlie bring Gabriel's horn to Alcatraz Island and give it to Red in exchange for David's life. Determined to fulfill his promise to get David home, Charlie approaches Red, who presses him to give him the horn. He does so, and Red uses it to capture Heaven's canine angels and send them to Earth in the prison cells, including Anabelle. Charlie, Itchy, Sasha, and David fight Red and steal the horn, which Charlie plays to free the angels and send Red back to Hell. Carface comes out of hiding and attempts to downplay his involvement. However, he does offer a genuine apology, hoping to finally make amends with Charlie. Red drags Carface into Hell after himself, which reveals to everyone that Carface unknowingly sold his soul to him in exchange for his collar.
Charlie gives the horn back to Anabelle in exchange for his life and says goodbye to Itchy, who decides to remain in Heaven. After he reunites with Sasha and David, they head to the latter's house where he returns and reunites with his parents. His stepmother is happy that he is alive and explains she has been worried about him and says just because she is pregnant does not mean she does not love him and that they are a family. They then adopt Charlie and Sasha, and the two share a kiss, before enjoying their new life together.
- Charlie Sheen as Charlie B. Barkin, the main protagonist. He returns from Heaven to retrieve Gabriel's Horn. It is revealed that as a youngster, he ran away from home, a point he mentions to David to convince him to return home. (singing voice by Jesse Corti)
- Dom DeLuise as Itchy Itchiford, the dueteragonist and Charlie's best friend. He only wants to do what he was sent to do and go back to Heaven.
- Ernest Borgnine as Carface Carruthers, the tritagonist and Charlie's old nemesis, who becomes a servant to Red through a deal between them. In this film, he is an anti-hero.
- Sheena Easton as Sasha La Fleur, one of the two tetartagonists and a serene lounge singer and Charlie's love interest.
- Adam Wylie as David, one of the two tetartagonists and a lonely 8-year-old human boy and Sasha's owner. He believes that Charlie and Itchy are his guardian angels sent to get him back home.
- George Hearn as Red, the sole antagonist, a powerful cat-like monster and the main antagonist. He wants to imprison the dogs of Heaven and drag them into Hell. To manipulate his victims, he disguises himself as an elderly dog through his ability to transform (shapeshifting). He has bright red fur in his true form and red skin and clothing in his dog form, hence his name.
- Bebe Neuwirth as Anabelle, the archangel dog in Heaven. She summons Charlie and Itchy to retrieve Gabriel's Horn.
- Hamilton Camp - Chihuahua He waits for dogs especially a dog who puts on some weight to be healthy called Fluffy
- Dan Castellaneta - Tall Customs Dog
- Pat Corley - Officer McDowell
- Jim Cummings - Jingles, a Yorkshire Terrier who got kicked out of the sing-off, but was given the 1st place bone by Sasha.
- Bobby Di Cicco - Tom
- Annette Helde - Claire
- Marabina Jaimes - Officer Reyes
- Tony Jay - Reginald
- Maurice LaMarche - Lost & Found Officer
- Steve Mackall - Short Customs Dog
- Kevin Michael Richardson - Ace the St. Bernard and Officer Andrews
- It's Too Heavenly Here (Jesse Corti)
- Count Me Out (Sheena Easton)
- My Afghan Hairless (Jim Cummings)
- It Feels So Good To Be Bad (George Hearn and Ernest Borgnine)
- On Easy Street (Jesse Corti, Adam Wylie & Dom DeLuise)
- I Will Always Be With You (Movie) (Movie - Sheena Easton & Jesse Corti)
- I Will Always Be With You (End Title) (End Title - pop version - Helen Darling and Danny Frazier)
- In the Espanol version of the ending credits, an instrumental version of “I will always be with You” plays.
- Three characters were written out of the sequel:
- Anne-Marie was written out of the story due to the murder of Judith Barsi in July 25, 1988, as Anne-Marie was replaced with David.
- Killer and Flo were written out of the story because Charles Nelson Reilly and Loni Anderson chose not to return to their roles from the first film (although Reilly returned for the third movie and the TV series).
- There is a purpose with the timeline setting made for this sequel, involving taking place 56 years after the event of its predecessor. It can be viewed as a cleaver way for the younger viewers to avoid Anne-Marie's disability to reprise her role due to Barsi's tragedy being too unsettling for them, but only have them to think Anne-Marie is a pre-senior citizen who technically moved on.