Oopsy Bear, Ashleigh Ball, Cheer Bear, Tabitha St. Germain, Funshine Bear, Ian James Corlett, Share Bear, Tracey Moore, and Grumpy Bear, Scott McNeil, are busy building WooHoo World, Care-a-Lot's bright new amusement park. The project sparks a wave of teamwork and excitement as each bear brings a specific task to the table, turning a big dream into a tangible place where friends can celebrate their caring spirit. Oopsy, who is responsible for painting the tracks of the Funderbolt ride, finishes a section but quickly discovers he’s made a mistake. In a playful yet risky moment, he slips into the fresh paint and slides himself down the entire length of the ride, turning a simple test into a chaotic spectacle that sends everyone into a scramble.
The mishap sets off a chain of events that threatens to derail the grand opening. Grumpy and the others scramble to manage the fallout, while Oopsy feels a heavy weight of guilt. He worries that his accident might ruin everything his friends have worked so hard to build. In a show of support, Funshine suggests placing clear signs around Care-a-Lot to prevent future trouble, and Cheer offers practical help by giving Oopsy a special whistle for quick assistance when trouble looms.
Meanwhile, a new threat looms from Grizzle, a bear who doesn’t understand the Caring Stuff and has his own plan to conquer Care-a-Lot. He invents a dangerous ride called the CareTaker, designed to steal the Care Bears’ belly badges. To power this ominous contraption, Grizzle needs three emblematic ingredients: a smiling sun (Funshine’s symbol), a crying stormcloud (Grumpy’s symbol), and a rainbow (Cheer’s symbol). He dispatches Wingnut on a mission to collect these components from Care-a-Lot. Wingnut befriends Oopsy along the way, and together they travel to Grizzle’s lair, where the villain explains his plan and pressures Oopsy to help gather the final ingredient: a real rainbow.
Back in Care-a-Lot, Oopsy and Wingnut return with the sun and the stormcloud, but Grizzle is unsatisfied with the rainbow painted on Oopsy’s backside, insisting that a “real” rainbow is needed. When Cheer dares the CareTaker with this rainbow, Cheer’s own rainbow symbol disappears after a ride that Grizzle sabotages. Enraged, Grizzle sheds his metallic suit, captures Cheer and Oopsy, and unveils his broader plan to strip the Care Bears of their belly badges and take over Care-a-Lot.
Oopsy feels the sting of guilt but finds support in Cheer, who encourages him to stay hopeful and to help find a solution. Oopsy notices a tool and uses it to unlock the bars that confine them. With courage rekindled, WooHoo World reopens and the Care Bears rally to face the crisis. Grizzle has stolen all the belly badges and stored them in a translucent ball, hoping to use belly badge magic to conquer Care-a-Lot. Yet the magic only works for those who care, not for the conqueror.
Oopsy reminds everyone of who they are and the power of their shared care. The bears join hands, reinforcing their bonds and summoning the magic back along with the belly badges—though Oopsy’s own badge remains uniquely his, a badge he drew himself. Wingnut decides to stay with the Care Bears, while Grizzle is sent back to his lair. The next day, WooHoo World reopens with a new ride addition: a corkscrew called “Oopsy Loopsy,” honoring the bear who sparked the day’s events. The park thrives again as Care-a-Lot residents and WingNut share rides and laughter, with some enjoying the Funderbolt once more.
The end credits celebrate children and their Care Bears teddy bears, closing with a dedication to Shelly Spahnie, a valued worker for American Greetings.
