Koala bear Buster Moon (Matthew McConaughey) must find a way to save his failing theater, so he plans to host a singing contest with a cash prize for the winner. Many animals in town show up for a chance to compete, with several animals wanting the money for personal reasons or just a chance to prove that they have what it takes.
When Buster tries to put on a preview for potential investor/famed theater performer Nana Noodleman (Jennifer Saunders), a series of mishaps leads the theater to be destroyed. Buster loses hope until the other animals convince him that the show must go on.
The show is a huge hit and gives Nana reason to give Buster funding. They manage to rebuild the theater and welcome a new audience, while Buster has made some new friends.