Andy Davis, voiced by John Morris, is just 17 and preparing to leave for college in a few days. This transition hasn't gone unnoticed by his toys, who cling to the hope that Andy might play with them once more before he leaves. However, that hope quickly fades. As the toys gather to reflect on the number of lost companions over the years, their focus shifts to Sarge, the last of the green Army Men (voiced by R. Lee Ermey), along with two paratroopers. Worrying about being discarded, they decide to leap out the window, their parachutes soaring into an uncertain fate.
This anxiety spreads among the remaining toys, which include Woody, portrayed by Tom Hanks, Buzz Lightyear, voiced by Tim Allen, Jessie (voiced by Joan Cusack), Bullseye (voiced by Frank Welker), Mr. Potato Head (voiced by Don Rickles), and a variety of others. While many toys fear being thrown away, Woody remains optimistic, believing that Andy will store them in the attic for future use when he has kids of his own.
Their "staff meeting" is abruptly interrupted when Andy returns home with his mother (voiced by Laurie Metcalf). Struggling to prepare for his departure, Andy's mom instructs him and his sister Molly (voiced by Bea Miller) to sort through their belongings. The toys watch anxiously as Molly discards her Barbie doll (voiced by Jodi Benson) along with other toys into a donation box. Andy hesitates at the moment he reaches for Woody, eventually placing him in a box labeled 'College' while tossing Buzz into a black trash bag. Alarmed at the thought of being discarded, the toys hope for salvation as Andy opens the attic door, only to be thwarted by Molly's actions that seal their fate in the trash bag when their mother unknowingly takes it to the curb.
Desperate, Woody escapes the window and races to salvage his friends from the garbage truck, but he can only watch in horror as the trash bags are emptied into the truck. In that moment of desperation, he sees salvation— a recycling bin— and breathes a sigh of relief when he discovers that his friends managed to escape. However, they are now convinced that Andy wanted to throw them away.
Woody strives to clarify the misunderstanding, but most of the toys remain convinced he is merely in denial. Observing the donations box to Sunnyside Daycare, Jessie suggests they venture there. Woody, however, insists they must return to Andy's room immediately. But before he can voice his concerns further, the van's trunk slams shut, sealing their fate as Andy's mom transports the box to Sunnyside.
Once at Sunnyside, Andy's mom delivers the toys to the Butterfly Room, where they excitedly witness children enjoying playtime with toys. However, the joy is short-lived as they eventually meet Lotso (voiced by Ned Beatty), a strawberry-scented bear who introduces them, along with Ken (voiced by Michael Keaton), to the daycare's way of life. Lotso reassures them that they will always have playtime due to the endless stream of children. Enthralled, the toys follow Lotso to the Caterpillar Room for their first play experiences, but soon find themselves surrounded by rambunctious toddlers who treat them far less delicately than Andy did.
Following a chaotic play session, their outlook darkens as Buzz attempts to confront Lotso, only to fall into the hands of a sleepy-eyed doll named Big Baby. Buzz is taken captive alongside the other toys, soon realizing that Lotso runs a regime where newcomers face rough treatment in the Caterpillar Room until they earn their way back to the preferable Butterfly Room. Meanwhile, Woody finds solace with a girl named Bonnie (voiced by Emily Ricks Hahn), discovering a new sense of importance in playtime but yearning to return to Andy.
Through a series of escapades, Woody hatches a plan to rescue his friends. The toys maneuver through the security structure of Sunnyside, plotting their way back home. As the inevitable confrontation with Lotso arises, Woody reminds everyone of the love they share for Andy, igniting hope and rebellion against the toy tyrant.
With climactic tension, the toys unite to escape a vile fate set by Lotso, whose betrayal leads to a confrontation ending in a shocking twist. Finally escaping the clutches of a trash compactor, they find themselves grateful for each other's bravery and the bonds they’ve formed, embodying what it means to belong and be loved.
When the dust settles, Woody and his friends manage to return home just in time, sneaking back into Andy's room as they navigate an emotional goodbye. In a touching farewell, Woody takes one last leap into the 'Attic' box, realizing that love endures even as Andy departs for college. Closing this chapter on a hopeful note, Andy encounters Bonnie, and with a warm heart, hands over his cherished toys—ensuring they remain loved, treasured, and ready for countless new adventures with their new friend while cementing the lasting memories of their time with him.
