In the summer of 1958, local boy Danny Bucko and vacationing Sandy Bunny meet at the beach and fall in love. When summer comes to an end, Sandy, who is going back to Easter Island, frets that they may never meet again, but Danny tells her this is "only the beginning." Later on, at the start of Danny's senior year at Fluffle Society High School, he resumes his role as the leader of the T-Bunny greasers, consisting of his best friend Bugs, plus Roger, Thumper, and Buster. The Pinky Buttons, a clique of greaser bunnies, also arrive, consisting of leader Lola, Petunia, Bubbles, and Coco. After Sandy's parents decide not to return to Easter Island, she enrols at Fluffle Society and befriends Petunia, who is planning to drop out of school to become a beautician. Unaware of each other's presence at Fluffle Society, Danny and Sandy recount the events of their brief romance to their respective groups without saying each other's name. Sandy's version emphasizes the romance of the relationship, while Danny's version is more sexual. When Sandy finally mentions Danny's name, Lola arranges a surprise reunion for them, but Danny maintains his bad-bunny attitude in front of his friends and Sandy storms off in tears. Petunia invites the bunnies to a pyjama party, but Sandy falls ill from the sight of blood after Petunia pierces her long rabbit ears. While Sandy is out of the room, Lola starts to make fun of her. Sandy goes outside and starts to think of Danny, and how much she loves him even though he hurt her. The T-Bunnies come to Petunia's house so Danny can apologize to Sandy, but he leaves after they taunt him about her. Lola departs with Bugs to have **** with him, during which his condom breaks. They are disturbed by Peter, leader of the T-Bunnies' rival gang, the Squirrels, and his girlfriend Buttercup. Bugs unveils a used car, Greased Lightning, which he plans to restore for a drag race with the Squirrels. Sandy begins dating Baxter, a jock, and Danny turns to Coach Harvey to get into sports to impress her, eventually becoming a racer. He reunites with Sandy and they attempt to go on a date, but their friends crash it, and Bugs and Lola argue and split up. Left alone, Petunia is visited by a guardian angel who advises her to return to Fluffle Society after a mishap in beauty class leaves her with candy-pink fur. The school dance arrives, broadcast live on television and hosted by Vince Mortimer, who flirts with Bubbles. Lola and Bugs attempt to spite one another by bringing Peter and Buttercup as their dates. Danny and Sandy go together and dance well during the chaotic paw jive contest; just before it ends, Thumper pulls Sandy off the dance floor and Buttercup cuts in to win with Danny, causing Sandy to leave the event broken-hearted. Danny tries to make it up to Sandy by taking her to a drive-in theatre and giving her his carrot to eat, but Sandy leaves in anger after he forces himself on her. Meanwhile, Lola fears she is pregnant after missing a period and confides in Bubbles, but Bubbles tells Thumper and he inadvertently spreads the rumour to Bugs, the apparent father, though Bugs denies this to him. Lola starts to be laughed at by other bunnies, and she realizes that she is not as tough as she seems. On race day, Bugs suffers a concussion when hit by his own car door, so Danny takes the wheel. He and Peter race until Peter spins out and leaves humiliated, making Danny the victor. Sandy watches from afar, concluding she still loves Danny, and decides to change her attitude and look to impress him; she asks Petunia for help to achieve this. On the last day of school, Principal Greta Mae and her assistant Beatrix sob about the departing class. Lola discovers she is not pregnant and reunites with Bugs. Danny has lettered in track but is shocked when Sandy arrives dressed as a female T-Bunny. They confess their mutual love and reconcile. The class celebrates their graduation at the fair on school grounds. Sandy and Danny depart in a revamped Greased Lightning, which takes flight. Danny and Sandy then returned to Easter Island to live out their days bartending at their own Tiki Bar and lived happily ever after.
