Montana Max hangs out with three gang members and the Ghost Monsters, so he can be cool. He and his gang go into Acme Buy N' Buy, where the owner Rémi Bughari asks them if there is anything they want to purchase. Monty tells Remi that they're just looking as he and his gang steal a slushie machine. Buster and Pac-Man are on their way to Acme Buy N' Buy to get a carrot/power pellet slushie, but Monty, the ghosts and the gang pass by them with the police on their tails. Pac-Man and Buster confront Monty and his gang in an alley and demands they give the slushie machine back. They toss the slushie machine on top of Pac-Man and Buster and flee as the police arrive. Remi thinks that Pac-Man and Buster are the ones who stole his Slushie Machine and one of the police officers arrest them as Monty, the ghosts and the gang have framed Pac-Man and Buster for the theft.
Pac-Man and Buster are put on trial and Plucky Duck is their lawyer. Babs and Ms. Pac-Man are the court reporters and Babs tries to impress the judge with impersonations of Looney Tunes characters. Plucky turns out to be a very obnoxious lawyer and he, Pac-Man and Buster are sent to jail when they are found guilty of both slushie theft and disorderly conduct in a courtroom (the jury is made entirely of Yosemite Sam clones). As they are being bused off to jail, Plucky loudly protests his innocence until Buster whacks him with the judge's mallet.
Monty and the ghosts are pleased that Pac-Man and Buster are in Jail. Plucky goes insane being locked up, despite the fact that he and Buster have only been in jail for five minutes. Pac-Man, Buster and Plucky tell a guard that they want a better room. The guard assigns them to working in the garden, threatening to put them in the hole if they fail. Using a garden hose, Plucky tries to escape, much to Pac-Man and Buster's disapproval. They are sent to the hole, where it is so dark, all they can see are their eyes. To pass the time, Buster and Plucky use their eyes to play the Pac-Man arcade game, as well as Pong. Pac-Man is impressed that Plucky can do a good impression of him. With nothing to look at but their eyes, Plucky suggests they find a way out. Buster starts digging his way out with Pac-Man and Plucky following closely behind. They make several attempts to burrow out, eventually ending up in the Juvenile Hall storage room, where they meet up with the prisoners Rocky and Mugsy who force them to dig them to freedom.
Meanwhile, Ms. Pac-Man, Gogo Dodo, Babs Bunny, and Hamton J. Pig want to free Pac-Man, Buster and Plucky, and they beg the Warden to release them. Babs also tells them that they are Buster's friends and have signed petitions to release them. Ms. Pac-Man tells the Warden that her "Packy" always does the right thing. Buster digs his way up and leads them to the Warden's office where the Warden releases Pac-Man, Buster and Plucky for turning over Rocky and Mugsy. In return for turning them over , Pac-Man and Buster are given a chance to prove they was framed.
Monty, the ghosts and the gang are roaming the streets, making a mess of Acme Acres. Pac-Man, Ms. Pac-Man, Buster, Gogo, Plucky, and Babs start rapping with Plucky as the DJ to get Monty to confess and he refuses. Among the gags they use is the prison bus, retooled as a boom box, which they use against The ghosts, Monty and his gang. Hamton tries to think rap and fails. He plays a banjo and then does a disco dance, neither of which impresses the others.
Despite Hamton's mishaps, the Pacs and Toons continue chasing the ghosts and Monty using the rapping sound and other pressure tactics against him and eventually this strategy pays off. The ghosts and Monty finally turns theirselves in to the Warden and confesses to the crime so that they don't have to hear that rapping sound. Buster is given a full pardon as Monty is sentenced to 3 months of juvenile hall and community service. The ghosts are sent to six mothns in jail as well and Inky could not take it much. Hamton ends the cartoon by telling Pac-Man and Buster that he knows how to rap. He wraps a gift box, and Buster tells him not to quit his day job.
Pac-Man is referanced in this film with Buster & Plucky playing the game with their eyeballs.