This movie takes place after the events of End Game and the Blip. Poor Peter Parker just wants to take a trip to Europe with his classmates and tell MJ how he really feels about her. Instead, he is handed the keys to Tony Stark's billion dollar empire, selected by Tony himself to take his position in the Avengers. As usual, trouble follows, this time in the form of a giant typhoon and fire monsters. Peter meets up with Nick Fury, who is recruiting him to join the Avengers team to save the world from the typhoon and fire monsters. Except Fury is actually a Skrull, and the real Nick Fury is manipulating the situation from a spaceship in outer space.
Jake Gyllenhaal's character Mysterio is the main villain. Mysterio is motivated to become the next Iron Man after being fired from Stark Industries. Initially he appears to be on Fury's side, fighting off the typhoon monster. However, Peter naively gives Mysterio the glasses used to control Tony's gadgets, which includes fancy killer drones that can project life-like images. Thus, the typhoon and fire monsters aren't real. They are illusions controlled by Mysterio and Stark's fancy drones (though it is unclear how Mysterio is doing this prior to having access to Stark's AI). Mysterio himself has no special powers. The entire thing is an illusion, controlled by Mysterio and his team behind the scenes, almost like special effects in a movie. I'm not sure how I feel about the Mysterio character. On the one hand, he has a unique approach to being a villain. On the other hand, he seems a bit desperate.
Overall I enjoyed this movie, though not as much as the first Tom Holland Spider-Man. Tom, Jon, and the rest of the cast were great, as usual. Having Jackson's Nick Fury character is always a bonus, though it was at the expense of having no Tony Stark. Zendaya's (she's so cool she only has one name) MJ character was featured more heavily in this movie, which is a good thing.
Back to poor Peter Parker. Despite the interruptions, he was able to start dating MJ by the end of the movie. As soon as they arrive back in New York, however, the Daily Bugle (which now is apparently a pod cast) releases a video of Mysterio revealing Spider-Man's identity, setting in motion the events of No Way Home, the multiverse, and the fourth phase of the MCU.