With Andy going to college, Woody, Buzz and the rest of the toys have ended up in a daycare called Sunnyside. A teddy bear called Lotso runs the place, but it quickly becomes apparent that not everything's sunny in Sunnyside after all... Disney/Pixar Toy Story 3 takes you through the toys' adventures that lead them to Sunnyside and beyond, as well as places not seen in the film, such as Bonnie's caffeine-fuelled imagination.

The game features two different modes - the first is Story Mode, which has the toys retelling the events of the movie to their new found friends. In this mode, players take control of Woody, Jessie and Buzz, each with their own unique moves to help them explore the world. Story Mode revisits Andy's imagination of Woody in the wild west, lets players play the Buzz Lightyear videogame seen at the start of Toy Story 2, has them breaking out of Sunnyside in a stealth level, and even takes them to a Haunted Bakery! Each level has secret cards hidden throughout - these cards unlock special bonuses such as concept art, a short making of movie, and best of all, new toys for the Toy Box Mode.

Toy Box Mode is a deeper experience than Story Mode. In this mode, players can explore all of the world of Woody's Roundup as either Woody, Buzz or Jessie (as well as Emperor Zurg in the PlayStation 3 version). In this mode, players build a town for Mayor Hamm using the money they find by completing missions, which can be anything from rescuing cows, to destroying a dam, to taking photos of people or places, to racing in a giant stunt track, to catching bank robbers and throwing them in jail, to pretty much anything!

Money can be used to buy new toys, such as new town buildings, Micro Machines-style racers, Bullseye the horse (to ride), and even new citizens for your town. You can also redecorate your town any way you like, using the items you find in toy capsules strewn all over the landscape. These items can be used to change the look of your buildings, or the citizens themselves - you can change their hairstyle, clothes, or give them a new hat. Some special missions are given using a ViewMaster-style toy where you look at pictures which give you clues on how to dress up toys or buildings (such as making four citizens look like a mariachi band and then placing them in front of the saloon).