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 governmental campaign by shutting down Jellystone Park and opening the land to logging. To save the park, park rangers Smith and Jones, with help from Smith's love interest 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. Two brown bears named Yogi and Boo-Boo Bear, who steal picnic baskets from visitors in Jellystone Park while the rangers attempt to hinder them, 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 waterskiing performance, but Yogi inadvertently sets his cape on fire causing fireworks to be launched into the crowd, who flee in panic.