In a world of anthropomorphic animals, in the happy little town of Calatonia, theater owner koala Buster Moon tells his cowardly and wealthy friend Eddie that he will host a singing competition with a prize of $1,000, to promote his theatre following financial problems brought up by grumpy and selfish bank representative llama Judith. A mishap involving the glass eye of Buster's assistant, elderly iguana Miss Crawly, leads to two extra zeroes being applied to the flyer's computer document, mistakenly saying the prize is $100,000. The misprinted flyers are then blown out the window into the street by a desk fan.
Animals from all around the city gather for auditions. Those selected include: excitable and enthusiastic housewife and mother of 25 piglets Rosita; cheerful and wild punk-rock porcupine Ash; worrisome and dreamy mobster's son gorilla Johnny; and selfish and bitter street musician mouse Mike. Shy and soft-spoken teenage elephant Meena fails her audition out of stage fright, while Ash's no-nonsense boyfriend Lance is dismissed from the contest. Rosita is paired with another contestant, an exuberant and energetic pig named Gunter, the most positive animal in Calatonia, for a dance routine. Although Buster discovers the flyers show a prize of $100,000 (money he does not have), he remains optimistic. Buster convinces Eddie to arrange a visit with Eddie's short-tempered grandmother, former opera singer and theater actress Nana Noodleman, to persuade her to sponsor the prize money. She is hesitant to contribute, but agrees to see a private screening of the show...
