The movie picks up almost where it left off, with Rey and Chewie on Ahch-To the other rebels are evacuating their base. The first order lead by Kylo Ren attack the ships used by the resistance to evacuate. Poe Dameron leads a costly attack against an imperial dreadnought against the orders of General Leia Organa, the dreadnought is destroyed but at the heavy cost of resistance troops. The attack allows rest of the resistance ships to escape into hyperspace, they are however tracked by the First Order. Kylo hesitates while attacking the lead ship as he senses his mother Leia onboard, one of the imperial ship shoots and destroys the bridge of the lead ship. Most of the leaders are killed and Leia is sucked into space, Leia uses the force to save herself from certain death but in doing so leaves her weak. While Leia recovers vice-admiral Holdo steps up to assume command of the surviving resistance ships.
The film then picks up with Rey offering Luke his fathers saber, Luke promptly tosses the saber off a cliff and wordlessly leaves Rey. Unwilling to give up Rey tries to get Luke to teach her the ways of the Force, Luke outright refuses and claims that the Jedi should end. After some convincing from his old friend R2-D2, Luke agrees to give Rey three lessons of the way of the Force. Rey is drawn to a cave under the island that emanates some kind of connection to the dark side. A furious Luke reprimands Rey when he discovers her in the cave. Somehow Rey and Ben begin seeing each other and communicating, this phenomenon unheard of for eras was known as a Force dyad.
While communicating within the force Ben reveals that Luke was afraid of the Raw power Ben possessed and the fact that Luke tried killing him. Luke discovers Rey and Ben communicating through the force and immediately puts a stop to it. Rey confronts Luke with the facts Ben told her, Luke confesses that he felt Ben veering off the path and contemplated killing him. Luke saw the darkness in Bens future and was scared of his power so he tried killing his own nephew while he was asleep. A scared and enraged Ben woke up before Luke could follow through with the killing blow, Ben decimated the Jedi temple and killed all the other apprentices earning the name Jedi Killer. Ben then fled to Snoke who took him in and gave him the name Kylo Ren. After learning all that Rey decides to try and save Kylo and bring him back.
Meanwhile Poe entrusts Finn, Rose and BB-8 with a mission to get rid of the tracking device. After getting a hacker DJ the group infiltrates Snokes flagship but are captured by captain Phasma. Kylo brings Rey aboard the flagship before Snoke, Snoke reveals that it was him who connected Rey and Kylo to learn the whereabouts of Luke. On Ahch-To Luke contemplates destroying the Jedi library but doesn’t follow through, the Force ghost of Jedi Grand Master Yoda summons a lightning bolt to destroy the Library anyway.
On the resistance ship Holda plans on evacuating the forces to a abandoned base using smaller vessels. Poe finds the plan cowardly and mutinies against Holda, he is stopped by Leia who stuns Poe and bids her friend Holda a goodbye. Holda remains on the flagship intending to act as a decoy to help the others escape. DJ the hacker buys his freedom by telling Phasma about the escaping vessels, the order attacks said vessels and successfully destroys many.
Snoke orders Kylo to kill Rey but he activates the saber next to Snoke cleaving him in half, Kylo and Rey defeat the guards known as knights of Ren. Rey is forced to face Kylo when he asks her to join him in ruling the galaxy. Meanwhile Holdo crashes herself into Snokes ship to destroy it and let the others escape. The survivors escape to Crait an abandoned base, Rey escapes the explosion along with Finn, Rose and BB-8 aboard the Falcon. Kylo Ren declares himself the supreme leader and orders the First Order to attack Crait. On the surface Poe, Rose and Finn lead the attack against the first Order using speeders, Rey and Chewie deal with a squadron of TIE fighters with the Falcon. All hope seems lost when the Order uses a siege cannon to get through the Base doors.
Luke appears to save the resistance and engages the first order, Kylo orders his forces to focus their attack on Luke. The attacks don’t seem to harm the old Jedi, Kylo steps on the battlefield intending to duel with Luke. The resistances uses these opportunities to slowly escape. Kylo strikes Luke with his saber only to realise Luke is a projection, Luke projected himself using the Force to help the resistance and talk to Kylo. Rey helps the remaining resistance members to escape aboard the Falcon, Rey and Leia sense Luke peacefully dying with the Force. The resistance makes it out alive and the movie pans to the stable hands that helped Finn, Rose and BB-8 escape, one of the kids uses the Force to pull a broom towards him. This symbolises a new generation of Force users coming into the picture having learned about the force through tales of Luke Skywalker.
This wraps up the story, the next chapter seems to be the last one. We will see a few of our favourite characters like Han, Leia, Luke probably for the last time. Gear up for the final chapter, until then may the Force be with you.