Plot
Andy, now 17 years old, is preparing to leave for college. He has not played with his toys for years, and only Woody, Buzz Lightyear, Jessie, Bullseye, Rex, Slinky, Hamm, Mr. and Mrs. Potato Head, the Aliens, and three toy soldiers remain. As the despondent toys reflect on their future, the soldiers parachute out the window and leave. Andy intends to take Woody to college, and puts the other toys into a trash bag, to be placed in the attic; however, Andy's mother mistakenly puts the bag outside with the true garbage. The toys narrowly escape from the garbage truck, and, believing Andy deliberately threw them away, get into a donation box in Andy's mother's car with Molly's old Barbie doll. Woody follows in an attempt to bring them back, but is unable to convince the others of Andy's real intentions, and goes along when Andy's mother takes the box of donations to Sunnyside Daycare.
At Sunnyside, Andy's toys are welcomed by the other toys, led by Lots-O'-Huggin' Bear ("Lotso"). The toys (except for Woody) are delighted to learn that Sunnyside never runs out of children, and Barbie is enamored with a Ken doll. Woody attempts to return home, but is instead found by a child from Sunnyside named Bonnie, who brings him home and plays with him and her other toys. Bonnie's toys are shocked that Woody escaped from Sunnyside. Chuckles, a toy clown, explains that he, Lotso, and Big Baby, Lotso's assistant at Sunnyside, were owned by a girl named Daisy, but were lost during a family trip. When they made it home, Lotso found out that he had been replaced. Disregarding Chuckles' protests, the embittered Lotso lied to Big Baby that Daisy had replaced all of them. They rode a truck to Sunnyside, where Lotso took over, turning it into a toy prison. Chuckles was eventually broken and later found by Bonnie.
Meanwhile, back at Sunnyside after the toddlers play roughly with Andy's toys, Buzz asks Lotso to move the toys to the older children's room. Lotso allows Buzz to go, but when he insists that Andy's toys go as well, Lotso switches Buzz to his original demo mode factory settings, causing him to believe himself to be an actual space ranger under Lotso's command. Meanwhile, Mrs. Potato Head, through an eye she lost in Andy's room, sees Andy searching for his toys. They realize that Woody told the truth about Andy's intentions and try to escape, but Lotso's gang, recruiting a brainwashed Buzz, imprison them.
Woody returns to Sunnyside, where a Chatter Telephone tells him that there is now no way out, except through the trash chute. Later that night, the toys make their escape plan. After successfully incapacitating Lotso's night watchman, a Cymbal-banging monkey toy, they attempt to restore Buzz's memory, but Rex accidentally resets Buzz to Spanish mode. Spanish Buzz, still believing himself to be an actual space ranger, immediately allies himself with Woody and falls in love with Jessie. The toys reach a dumpster, but are cornered by Lotso and his gang. Woody reveals Lotso's deception to Big Baby, who angrily throws Lotso into the dumpster. As a garbage truck approaches, the toys try to leave, but Lotso pulls Woody into the dumpster. The rest of Andy's toys jump after him as the truck arrives, and all fall inside.
Buzz returns to normal after a television falls onto him inside the truck. The truck takes the toys to a landfill, where they are swept onto a conveyor belt leading to an incinerator. The Aliens spot an industrial claw, but are swept away while running toward it. After narrowly avoiding a shredder and rescuing Lotso, Woody and Buzz help Lotso reach an emergency stop button, only for Lotso to abandon them. The toys fall into the incinerator and resign themselves to their apparent fate, but the Aliens rescue them with the industrial claw. Lotso is later found by a garbage truck driver, who fastens him to his truck's radiator grille as a decoration. Woody and his friends ride Sid's garbage truck back to Andy's house.
Woody leaves a note for Andy, who, thinking the note is from his mother, donates the toys to Bonnie. Andy introduces the toys individually to Bonnie and is surprised to find Woody at the bottom of the donation box. Bonnie recognizes him, and though initially hesitant, Andy passes Woody on to her, and they play together before he leaves. Woody and the other toys witness Andy's departure as they begin their new lives with Bonnie.
In the film's epilogue, Barbie, Ken, and Big Baby have vastly improved Sunnyside and maintain contact with Bonnie's toys through letters. The toy soldiers parachute into Sunnyside, where Ken and Barbie welcome them.
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