Miley (Miley Cyrus) has become overwhelmed with her alter-ego's Hannah Montana's popularity. After having a catfight over a pair of shoes with Tyra Banks, missing saying goodbye to her brother because she was shopping, and coming late to Lilly's sweet sixteen as Hannah, her father, Robby (Billy Ray Cyrus) tricks Miley into going back to her hometown, Crowley Corners, Tennessee, to reflect on the things that really matter in her life. When the dismayed Miley asks if her career as Hannah Montana is over, Robby says to ask again in two weeks' time.
While in Crowley Corners, Miley spends time with her best friends Lilly (Emily Osment) and Oliver (Mitchel Musso), but has a rough time adjusting to farm life. At Lilly's birthday party, Miley is forced to attend as her alter-ego Hannah Montana, and performs the song "Let's Get Crazy", accompanied by Steve Rushton on the guitar. This goes badly because people direct their attention at Hannah instead of Lilly.
In her hometown, Miley develops a deep connection with a childhood friend Travis Brody (Lucas Till). Robby also has a love interest, Lorelei, played by Melora Hardin. Trouble arises when a reporter named Oswald plans to find out Hannah's secret identity and plans expose her. Miley starts to realize that she loves her life in Tennessee and questions whether she really does want to choose between two lives.