Michael "Mike" Wazowski, a six-year-old monster, sees Monsters Inc., a frightening business, on a school field trip. Throughout the browse through, the class satisfies Frank McCay, an employee of the business who works as a "scarer", getting in the human world to terrify children at night and harvesting their screams as energy to power the monster world. Mike, captivated with the concept of being a scarer, slips with Frank's door before anybody can stop him, where he watches Frank's scare efficiency, then follows him back with the door to the monster world. Frank scolds Mike, but is impressed with his capability to have followed him undetected, and provides him his Monsters University hat as a memento. Unconcerned to his teacher's later admonishments, Mike imagines being a scarer when he grows up.
Approximately eleven years later, Mike is a scare significant at Monsters University. On his first day, he satisfies his new roommate, Randall "Randy" Boggs, a nerdy monster that can turn invisible. During the first class of the scare program, as Mike is answering a question, he is disrupted by an additional scare student, an egotistic large blue beast called James P. "Sulley" Sullivan. The course is also informed by Abigail Hardscrabble, the stringent Dean of the scare program, that they should pass their last test of the semester to continue in the program. While Mike is studying one night, Sulley accidentally barges into his space to conceal the pig mascot he stole from their rival college, Fear Tech. While the two bicker, the pig takes Mike's MU hat and escapes. Mike and Sulley give chase, however when Mike finally manages to capture it, Sulley takes credit, and is invited to join Roar Omega Roar, the elite fraternity on campus. Mike wants to sign up with, but is rejected, magnifying the rivalry in between the two.
Mike research studies hard and repetitively responses questions in class properly, while the privileged Sulley, persuaded all he requires is his natural frightening ability, begins to falter. At the final exam, Mike and Sulley's competition triggers Hardscrabble to fail them both and dropping them from the program, which prompts Roar Omega Roar to eliminate Sulley from the fraternity. Disappointed in his dull new major, Mike chooses to verify himself by getting in the Scare Games, an extracurricular scaring competition. As the games are only for fraternity or sorority members, Mike joins Oozma Kappa, a little fraternity of misfit beasts. When Mike and Oozma Kappa are denied entry as they are one team member short, Sulley provides to join, seeing the competitors as his ticket back into the scare program, and Mike eventually hesitantly accepts. Mike also makes a deal with Dean Hardscrabble, who stays skeptical, to re-admit their whole group to the frightening program if they win, whereas if they lose, Mike must leave Monsters University. Sulley expects to carry the team by himself, however Mike thinks that with sufficient training, the whole group can be successful.
With the last-placing team in each round of the Games being removed from the competitors, Oozma Kappa fails the first challenge badly however astonishingly advances when another team is disqualified. They then attend a party at Roar Omega Roar home where at first the other competitors appear to accept them, but the fraternity pranks and embarrasses them rather. The group is discouraged as they are now the laughingstock of the entire campus, so Mike arranges a secret browse through to Monsters, Inc. to lift their spirits. After that, Oozma Kappa utilizes their wits and training to advance to the last round against Roar Omega Roar. Even having advanced so far, Sulley does not think that Mike can be a true scarer because of his absence of natural ability. After the group wins the final round, Mike discovers that Sulley adjusted the equipment to improve Mike's score. Mike is heartbroken and wishes to prove that he can becoming a scarer, so he breaks into the school's door lab and gets in a door to the human world, but finds that the door causes a summertime camp and he is incapable to scare the cabin filled with children.
Back at the college, Sulley confesses to The Dean, Hardscrabble, that he cheated, just as she is informed of the burglary. Realizing exactly what occurred, Sulley enters the door to search for Mike. After discovering Mike and fixing up, the pair, now being pursued by human adults, effort to return, but find themselves trapped in the human world, as Hardscrabble has shut down the door awaiting the authorities arrive. Mike understands that the only way to get back into the monster world is to generate enough scream energy to power the door from their side. Working together, Sulley and Mike horrify the adults, generating an overwhelming amount of scream energy and permitting them to return to the laboratory. Their actions cause their expulsion from the college, but the various other members of Oozma Kappa are accepted into the scare program the next semester as Hardscrabble was impressed with their efficiency in the games. They share farewells and as Sulley and Mike leave, Hardscrabble tells them they are the first to have actually shocked her, and wishes them luck for the future. Mike and Sulley work at Monsters, Inc. in the company mailroom with the Abominable Snowman as the mailroom's manager. Working their method up with the business, the two eventually enter into the Scarer Team.
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