As Woody's adventurous spirit leads him into trouble, he is ultimately banished from the forest due to his incessant teasing of a social media star camping nearby. In search of redemption and a chance to bond with others, Woody aims for Camp Woo Hoo, a picturesque retreat that promises camaraderie and creative expression. However, unbeknownst to him, an intriguing twist awaits: Buzz Buzzard, a fugitive seeking a low profile, masquerades as the head chef at the rival Camp Hoo Rah with a devious motive—stealing a hidden treasure.
Upon his arrival at Camp Woo Hoo, Woody develops connections with the camp's enigmatic director, Angie, and her charming daughter, Maggie. Unfortunately, his rambunctious antics disrupt the camp's previously peaceful atmosphere, earning him a reputation as a mischief-maker. Despite Buzz's outlandish attempts to sabotage the camp’s morale, Woody finds a way to bond with his fellow campers, encouraging them to recognize their unique talents as they prepare for the highly anticipated Wilderness Games—a thrilling competition that juxtaposes creativity against sheer strength.
Just as the spirit of Camp Woo Hoo begins to flourish, Buzz concocts another wicked scheme, pinning chaos on Woody once more. The arrival of Inspector Wally Walrus spells trouble, as he threatens to shut down the camp unless they prove their worth. Undeterred, Woody rallies the campers and persuades the inspector to allow them one last opportunity to redeem themselves through the Wilderness Games, even though the camp's history of losses looms heavily on their self-esteem.
Amidst a series of setbacks, the campers begin to channel their artistic talents into skilled assets. As the Games progress, Buzz watches with increasing anxiety, hell-bent on thwarting the success of Camp Woo Hoo and securing a win for himself. As the epic confrontation draws near, Woody uncovers Buzz's treacherous plan to manipulate Zane, the director of Camp Hoo Rah and Maggie's uncle, into selling his influence over both camps. With a sense of betrayal, Woody realizes that Buzz has been stockpiling weapons discreetly, thanks to a clueless mailman who mistakenly frees Woody from his forced confinement.
Preparing for the showdown, Woody and Buzz clash once again. At the same time, the campers at Camp Woo Hoo discover their fortifications have been compromised, yet under Maggie's ingenious leadership, they orchestrate a counterstrike that decimates most of the rival camp's defenses. Although Woody finds himself outmatched, he bravely uses a flare gun to summon both camps back to the center, exposing Buzz's illegal dealings and treacherous intentions. However, Buzz ingeniously traps Woody and the campers in the kitchen, prompting them to execute a thrilling escape. The two camps unite forces to reclaim the treasure from Buzz's grasp, but when Maggie becomes ensnared, Woody selflessly sacrifices his opportunity for victory to save her from a perilous fall, leaving him unconscious in the process.
In the wake of these tumultuous events, both camps come together, discovering that their long-sought treasure was, in fact, their cherished statue. Overwhelmed with emotion upon learning of his ancestral connections to the land, Woody stands proud as the two camps join forces under the name Camp Woo Hoo Rah, with his image proudly displayed on their camp flag as a symbol of forgiveness and unity. Before he departs back to the forest with a renewed sense of direction, Woody exchanges a heartfelt farewell hug with Maggie, promising to return next summer.
In an exhilarating mid-credits scene, Buzz and his escaped accomplice unwittingly crash their helicopter while realizing that the treasure chest merely contained stones. They find themselves outside a police station, confronted by officers enforcing their outstanding warrants.
