Welcome to Camp Rock - the ultimate camp for aspiring musicians ("Camp Rock Anthem"). Mitchie Torres arrives and greets her friends from last summer ("Brand New Day"). Everyone is welcomed by Camp Rock's founder, Brown Cesario. Mitchie starts off Opening Jam with ("This Is Me") and is joined by Connect 3 front man Shane Gray when he arrives with his brothers Nate and Jason. In spotlight-absorbing fashion, Tess Tyler takes the stage ("Start the Party"). The campers soon receive an invitation to visit the brand-new Camp Star, run by Brown's rival and former band mate, Axel Turner. Luke and the Star Campers perform a high-energy number ("Fire"), which overwhelms the Camp Rockers. Axel offers them a spot at Camp Star, and Tess immediately makes arrangements. Brown quickly shuttles the Camp Rockers back home to avoid further defections. Before they leave, Nate becomes smitten with Axel's daughter Dana, but is too shy to say anything.

Brown informs the campers that most of his staff took Axel's offer and Camp Rock will have to close immediately. Mitchie, devastated, calls her pals to action ("Can't Back Down"). Brown agrees to let Shane, Nate and Jason take over teaching the classes ("Play My Music"). Bolstered by their progress, the Camp Rockers challenge the Star Campers to a Final Jam showdown ("It's On"). Tess and Axel up the ante and offer to broadcast "Camp Wars" so viewers can vote for the winner. Brown is furious when he hears about the contest, but the Camp Rockers convince him they can do it. Mitchie starts working on their number and drives everyone to focus. Shane, Nate and Jason try to lighten the mood ("Heart and Soul"), but Mitchie makes everyone get right back to work. Spying from a distance, Tess misses how much fun she used to have at Camp Rock. As Mitchie and Shane fight about not spending time together, Nate sneaks across the lake to sing to Dana all the things he was too shy to say ("Introducing Me").

The Camp Rockers want to improve their chances by making the Final Jam number a duet between Shane and Mitchie, but they first have to get them back together ("Wouldn't Change a Thing"). Camp Wars arrives and the Star Campers perform a flashy hi-tech number ("Tear It Down"). Intimidated, the Camp Rockers give it their best ("What We Came Here For"). Everyone's thrilled until they realize that Axel solicited votes outside the broadcast and Camp Star is announced as the winner. On the way back to Camp Rock, Brown expresses how proud he is of everyone, even if the camp has to close down ("This Is Our Song"). Suddenly, the phones start ringing from parents who saw the performance and want to send their kids to Camp Rock next summer! Joined now by several Camp Star defectors, including Tess and Dana, the Camp Rockers are thrilled to know they will be back for an even better summer next year ("We Rock")!