Mitchie Torres returns to Camp Rock to be reunited with all of her camp friends ("Brand New Day"), especially Shane Gray . They both decide to spend the summer knowing each other better. Shane arrives at camp in a chicken wagon with Nate and Jason, who also happen to be his brothers , after their tour bus had fallen into the lake.
Meanwhile, Camp Star, a new rival camp located across the lake, invited Camp Rock to attend a friendly bonfire ("Fire"). After seeing Camp Star's performance headlined by Luke Williams (Matthew "Mdot" Finley), Camp Star's top star, some campers, including former Camp rock star Tess Tyler , decide to leave Camp Rock and join Camp Star. Many of the staff also leave due to the fact that Camp Star's owner Axel Turner promises to double their salaries. He also adds that the cabins are air conditioned. Tess quickly becomes partners with Luke on all of Camp Star's performances. Although they perform very well together and look like they make a great team, they constantly fight over the spotlight as they are both greedy.
Meanwhile, Nate falls in love with Dana , daughter of Axel; however, Dana's father refuses to let her meet him because he is the competition. Since most of Camp Rock's staff has left, Mitchie and her gang of friends who have stayed behind take it upon themselves to be Camp Rock counselors ("Can't Back Down"). At first, the new counselors struggle to keep up with their new schedules. But eventually everyone finds their niche.
When discussing the future of Camp Rock, Mitchie and her friends plan a showdown between the two camps at Final Jam ("It's On"). Camp Star agrees as Axel suggests they should challenge each other to Camp Wars, a showdown being broadcast live on TV. At first Mitchie is persistent and the other Camp Rock members are not that into it. But they learn that together they can win. Shane wants to go on a date with Mitchie but she is too focused on the Camp Wars to agree ("Wouldn't Change A Thing"). The next day Shane realizes Mitchie was right, so he, and the whole camp, put their heart and soul into it ("Heart and Soul").
Jason and the Junior stars are watching Tess and Luke perform during their rehearsal ("Walking In My Shoes"). Axel texts and tweets every mobile phone in the western hemisphere persuading people to vote for Camp Star. At the Final Jam, Tess and Luke perform their ("Tear It Down"). Although Camp Rock put their heart and soul into their performance with Shane and Mitchie singing lead vocals, the rest of the campers as dancers and musicians, and a video made by Trevor of their time together airing during the song ("What We Came Here For"). Camp Star wins presumably due to Axel's biased ad campaign, while Mitchie cries, Camp Star embraces their win, a Junior Rocker uncrosses her fingers, and Tess comforts Mitchie, while everybody else from Camp Rock is devastated because Camp Rock has to close down, since they lost. Despite the loss, Camp Rock's performance earns great applause from the crowd and Tess is shown to feel bad about the win as she knows Camp Rock deserved it.
The remaining Camp Rock staff and campers return to Camp Rock. Whilst packing up banners, Mitchie and Shane share a kiss. Afterwards, all the campers and staff gather and sing around the campfire one last time together ("This Is Our Song"). As they enjoy themselves, many of Camp Star's campers including Tess, Dana and Sam show up having seen the bonfire and ask to join in. Tess and some other members of Camp Star request to go to Camp Rock the next summer because it is much more fun than Camp Star, meaning that Camp Rock will have enough campers to remain open for the next summer.
