In the movie, Wallace and Gromit's pest control business, "Anti-Pesto," is facing a challenge as the annual vegetable competition is approaching, and there is a rat infestation that needs to be dealt with. However, Wallace's latest invention, the "Mind Manipulation-O-Matic" helmet, causes a malfunction, resulting in the creation of a giant were-rabbit that begins to wreak havoc in the town and consume all the vegetables in sight.

The duo then sets out to stop the monster and save the competition, teaming up with Lady Tottington, the wealthy and kind-hearted owner of the local gardens. However, their efforts are impeded by Victor Quartermaine, a pompous and arrogant hunter who aims to use the monster for his own gain.

As the were-rabbit's attacks continue to escalate, Wallace realizes that the creature is actually the result of his own attempt to cure the town's rabbits of their insatiable hunger for vegetables. With the help of Lady Tottington and Gromit's cunning, they manage to apprehend the were-rabbit and cure it, restoring peace to the town and ensuring the success of the vegetable competition.

The movie is filled with typical Wallace and Gromit antics, including quirky inventions, hilarious mishaps, and heartwarming moments of friendship and loyalty. It features the iconic stop-motion animation style that has become synonymous with the franchise, as well as the witty humor and endearing characters that have made it a beloved classic amongst both children and adults.

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