Season 3 of The Mandalorian might be the most highly anticipated of all the Star Wars TV shows coming to Disney+ this year, and after you've read these details, you'll be even more excited!
According to Making Star Wars (via SFFGazette.com), the series will indeed feature a huge battle (likely on Mandalore) with the remaining Mandalorians heading into action alongside their respective, armoured foundlings. Given Grogu's small stature, him suiting up for action is easier said than done, and it appears Din Djarin comes up with a unique solution.
Mando supposedly uses IG-11 as a "mech" for Grogu. They explain that he "literally sits inside the chest of a modified IG-11 who has been reinforced with beskar and has been turned into the foundling’s suit of Mandalorian armor." The droid - who exploded in The Mandalorian's season 1 finale - also offers Grogu "data on probabilities of success and protects The Child."
It sounds like Grogu will be controlling IG-11's enhanced form, though some semblance of the droid's personality remains. The former Jedi even "beats the sh*t out of some Stormtroopers," and the site posits that IG-11's return is likely down to those Jawas recovering what many suspected might be his remains after he blew himself up in an effort to protect Grogu from Moff Gideon's forces.
This sounds pretty bonkers, and yes, Taika Waititi is expected to lend his voice to IG-11 again.
While the concept described here might sound like something out of Men in Black, it's actually something Dave Filoni already explored in The Clone Wars with a bounty hunter named Seripas: