Most of the dolls in Uglyville live a happy life despite their imperfection. Uglyville is a place where being weird or strange is cool, and beauty more than what meets the eye. Free-spirited Moxy (Kelly Clarkson) and her friends live in bliss, letting their freak flags fly. They're occasionally joined by new dolls, who just like them, has imperfections.
When the adventurous Moxy wonders what's on the other side of the mountain where they live, she gathers together a group of her friends and they set out on an adventure to see what they can find. They discover the Institute of Perfection, where they meet Lou (Nick Jonas), a perfect boy doll with an attitude. He advises the Uglydolls to go home, but Moxy has more than a little moxie. The newcomers work to prove their worth and show that their flaws are what makes them different and unique.