Jordan with the Looney TunesAfter viewing a reel on Basketball and finding out about the NBA, the aliens steal the talent of 5 NBA stars (Charles Barkley, Patrick Ewing, Muggsy Bogues, Larry Johnson and Shawn Bradley) and use it to transform themselves into the tall and muscular Monstars. Fortunately, the Monstars haven't stolen the talent of Michael Jordan because he has retired from basketball to pursue a career in baseball (a real-life event). Bugs Bunny gets Jordan to help them in their basketball game. After a hardened battle and despite taking several casualties (Bugs Bunny himself gets injured in the process) and with the timely arrival of Bill Murray, The Looney Tunes manage to win the game and their freedom. Swackhammer berates the Monstars for losing, but then they realize that since they're no longer smaller than him, they don't have to put up with his bullying anymore. They launch Swackhammer into space, and give back the stolen skills through the basketball they got it from, becoming Nerdlucks again. The Nerdlucks ask Bugs Bunny a request to stay in Looney Tune land, to which Daffy and Bugs reluctantly agree. Michael Jordan then gives back the talent where the "bad players" touch the ball and become normal again. Michael Jordan then decides to return to basketball, mirroring his real-life return.

Many major and minor characters from Looney Tunes shorts make appearances in the movie, and are even joined by Lola Bunny, a female hare that acts as Bugs' love interest.

Notable cameos include Wayne Knight (as Michael's new manager, Stan), Bill Murray (as himself, but mistaken by Swackhammer in the movie for Dan Aykroyd - who himself starred in a basketball movie in 1996, Celtic Pride), Jim Rome, Larry Bird and Scottie Pippen.

The movie ends after the credits with Bugs, Porky, Daffy, the Nerdlucks and Michael saying the famous quote "That's All Folks".

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