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Yogi and Boo-Boo are two talking brown bears who steal picnic baskets from campers at Franklin City’s Jellystone Park. Head park ranger Smith always finds out about the incidents from his co-ranger Jones and is frustrated that Yogi can’t act like a regular bear. Meanwhile, Mayor R. Brown realizes that Franklin City is facing bankruptcy due to profligate spending on his part. Brown plots with his Chief of Staff to raise money for the town budget and his upcoming gubernatorial campaign by shutting down Jellystone and opening the land to logging. To save the park, Smith and Jones, with help from documentary filmmaker Rachel Johnson, hold a centennial festival and fireworks show in an attempt to sell season passes. To sabotage the effort, Brown promises Jones the position of head ranger if the funds are not raised. Yogi and Boo-Boo had promised Smith to stay out of sight during the festival, but Jones convinces them otherwise. The bears try to please the crowd with a water skiing performance, but Yogi inadvertently sets his cape on fire, causing fireworks to be launched into the crowd, who flee in panic.

After Jellystone is shut down, Smith is forced to stay in Evergreen Park, and scolds Yogi for interfering with the festival. A depressed Yogi finally decides to act like a regular bear, but Boo-Boo gets him to come to his senses by showing him cut-down trees. Seeing that their home is in danger of being destroyed, Yogi and Boo-Boo travel to Evergreen Park where they and Smith figure out Brown's plan: Yogi and Smith reconcile in the process. They all return to Jellystone with Rachel, where they learn that Boo-Boo's pet turtle is a rare and endangered species known as a "frog-mouthed" turtle, meaning that, according to law, the park cannot be destroyed if the turtle is living there.

The Chief of Staff learns about the turtle and sends Jones to kidnap it. On the day that Brown is planning a press conference to begin the destruction of the park, Smith, Rachel and the bears rescue the turtle and try to bring it to the media's attention. Jones, learning that he had been deceived by Mayor Brown, has a change of heart and helps the team bring the turtle to the press conference. At the press conference, Rachel reveals that she had installed a hidden camera in Boo-Boo's bow tie which had captured Brown admitting to his plan. Smith hooks up the camera to the jumbotron Brown is using for his press conference and shows the video, causing the crowd to turn against him. After Brown and his staff are arrested for their crimes, Jellystone Park is reopened and becomes a great success with Smith reappointed as head ranger, he and Rachel admit their feelings for each other, and Yogi and Boo-Boo stealing picnic baskets once again.