Before the events of the film, he was made in the lab by the real Dr. Carver. Unfortunately, after being in the sun for too long, he got burnt into a crisp, went bad, and declared revenge as he ran off. He covered his entire appearance with a plastic body (explaining the recurring gag with his nose). Dr. Carver forced almost all of the peaceful peanut people to work for him, except for Wally (who continued working for the original) and (later) Cashew.
At the beginning, he and Cashew were seen in the lab on Legume island trying to create a Super G-gnome warrior; unfortunately for Carver, the G-Nomes were unstable and turned into peanut butter instead. At W.A.S.T.E., he noticed that Oscar Proud had a formula that could multiply several nuts and he planned on getting it for his evil plan, believing that it could possibly stabilize the G-Nome warriors and prevent them from turning into peanut butter.
In order to do so, he had the Proud family invited to Legume Island and disguised it as a family vacation. Later at his estate, he offered Oscar $10 million for the formula; however he didn't exactly bring it with him or said where it was. After putting Oscar in a few ways of comedic torture, he created peanut clones of the entire family, by using personal items that were stolen during the lalu, to retrieve the formula outside the island. The clones are identical to the original but possess superhuman strength. Penny ends up going home with the cloned Proud family while Penny remains with the original family.
Later, Clone Penny informed Dr. Carver about the whereabouts of the Proud family, Wally, and the real Dr. Carver, who had been unaware that she was actually a clone . After he finally got the formula, he experimented and successfully created the G-Gnome warriors. To get rid of his prisoners, he tried to get them eaten by his sea monster; however the monster noticed the real Carver and after forgiving him for a past incident and realizing that Carver had missed them, he decided to become an ally and not kill them.
During the climax, Dr. Carver was seen on a blimp and announced to the stuffball crowd (and probably every location) that he was about to take over the world. He took off his face mask and revealed his true face. Penny and Carver fought on the blimp for the Peanut Liquidification gas. Afterwards, Penny released the gas and turned the G-gnome warriors into Peanut butter. In the end, the gas affected him as he fell off the blimp, causing him to turn back into a peanut and fall in the ocean.