Sharpay (Ashley Tisdale) meets Tiara Gold (Jemma McKenzie-Brown), a British exchange student whom she hires to be her personal assistant. When drama teacher Ms. Darbus (Alyson Reed) notices that there were so few sign-ups for the spring musical, Sharpay suggests she could do a one-woman show. This alarms Kelsi (Olesya Rulin), who is writing the show, so she immediately signs up everyone in their homeroom for it instead. This results in Ms. Darbus announcing they will create a play about their final days at East High, called Senior Year. In addition, she reveals that Sharpay, Ryan (Lucas Grabeel), Kelsi, and Troy have all been considered for a scholarship at Juilliard School, but only one of them is to be chosen. Troy is confused, because he did not apply to Juilliard. Seeing his friends laughing, he believes they gave his name to Juilliard. Sharpay becomes desperate to win the scholarship, and knowing that Kelsi will give the best songs to Troy and Gabriella in the musical, she gets Ryan to try to persuade Kelsi to give them a song, by predicting her (and Ryan's) future ("I Want It All").
The next day, Troy asks Gabriella to the dance while on the rooftop (seen previously in the first film as The Garden Club, a place where Troy goes seeking some quiet). She then teaches him how to waltz ("Can I Have This Dance?"). Chad then asks Taylor to go to prom with him with a cheesey pick-up line. She initially refuses, but later agrees when Chad proves he can put in some effort and asks again in front of everyone in the school. The group rehearses for the musical, a scene about their prom night ("A Night to Remember"). The next day, Ryan walks in on Kelsi composing in the music room and they start to sing ("Just Wanna Be with You") which leads to Ryan asking Kelsi to prom. While Troy and Chad reminisce about their past ("The Boys Are Back"), Sharpay and Tiara discover that Gabriella has a chance to go to college early to Stanford and Sharpay convinces Troy that he is the only thing keeping Gabriella from her dream. Troy talks to Gabriella about this and after sharing an awkward goodnight, Gabriella sings ("Walk Away") and leaves for college the next day.
Troy's dad, Jack (Bart Johnson), talks to him about his academic future, which he expects will be in the University of Albuquerque. This assumption makes Troy become angry and confused, and he runs away, storming around East High bewildered until he finally screams at the top of his lungs in the theater ("Scream"). Ms. Darbus is secretly watching and reveals that she sent in his application for Juilliard. Troy later gets a call from Gabriella saying that although she loves him, she will not return to Albuquerque. However, on the day of the prom, Troy visits Gabriella at Stanford University and convinces her to return and they kiss sweetly together during the lunch break (Can I Have This Dance? (Reprise)"). Back at East High, Sharpay is prepared for the last musical at East High and Troy's fellow basketball player Jimmie receives a text from Troy to tell him to cover for him onstage because he is going to be late. The Juilliard representatives are there, and watch as the show seems to go well.
Kelsi and Ryan start out the show followed by a couple other numbers; Jimmie then performs with Sharpay and embarrasses her, although the audience applauds the performance. Troy and Gabriella appear during the second half of the show and sing their duet together. Tiara then betrays Sharpay and tells her how she is going to take over next year in the drama department. Sharpay finally learns how it feels to be manipulated and humiliated, but nevertheless does not wish to go down. While Tiara performs, Sharpay immediately crashes her performance and upstages her ("Senior Year Spring Musical"). At the end of the musical, Ms. Darbus reveals that both Kelsi and Ryan have won the Juilliard scholarship and tells about everyone's future plans, in which Troy reveals he's chosen Berkeley so he can be close to Gabriella where he can play both basketball and perform in theatre ("We're All in This Together (Graduation Mix)") .
At the graduation ceremony, Troy gives the class speech. Throwing their caps in the air, the graduates form a giant wildcat before breaking out into song and dance to the tune of "High School Musical". As the film ends, the cast runs across the field, the curtain falls, and they appear on the East High stage. They do their famous High School Musical jump with a close up of the six in order before bowing when the curtain falls.
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