Space Jam tells the story of Michael Jordan and the Looney Tunes in their quest to defeat the Monstars in a game of basketball.
The story starts out with a young Michael Jordan telling his father his dreams of becoming an NBA superstar. He talks about going to UNC as well as winning an NBA championship. He then dunks the ball, and a montage showing his college and early pro career ensues over the opening credits. The movie fades back up with Jordan at a press conference, discussing retiring from basketball and playing minor league baseball.
Jordan plays baseball awfully, but gains an aid in Stan Podolak (Wayne Knight), who tries to help Jordan in any way possible.The movie also introduces his family, and shows his children watching Looney Tunes cartoons.
Meanwhile, on Moron Mountain (a theme park on Mars), the owner is struggling to gain customers. But when one of his minions sits on the remote, the Looney Tunes appear and he decides to take them as his slaves. His minions arrive at Toon World, and Bugs Bunny and the gang are no match for their laser guns. However, they outsmart the aliens and challenge them to a basketball game to determine their fate.
The aliens realize that they have no chance against the 'Tunes in a game, so they decide to steal the talent from five real-life NBA players (Charles Barkley, Patrick Ewing, Mugsy Boggues, Shawn Bradley, and Larry Johnson). This transforms them into the Monstars, a seemingly unbeatable basketball megateam. The Tunes must call for help from the legendary Michael Jordan to have any chance.
While playing golf with Bill Murray and Larry Bird, Jordan is sucked into Toon World by Bugs in order to have a chance to win the game. The tunes convince him to join them when the Monstars crash the practice and turn Jordan into a basketball. There is also the introduction of Lola Bunny, who is suprisingly good at basketball and defeats Bugs in 1v1, earning her a spot on the team. Jordan reveals that he needs his UNC shorts to play the game, and Bugs and Daffy Duck decide to go to his house to get them.
Bugs and Daffy run into problems when they arrive at Jordan's house and are attacked by his dog. They recover his shorts, but all hopes seem lost until Jordan's son comes, returns the shorts, and agrees to keep his father's game a secret until everything is resolved.