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|James Corden||Percy Patterson|
|Patricia Heaton||Mama Bear|
|Sarah Baker||Soozie's Mom|
"Not every legend is a tall tale."
"There's been a myth-understanding."
"Yeti or not, here they come."
A village of Yetis lives in isolation on the top of a mountain in the Himalayas, above the clouds and hidden away from sight. Migo is a yeti who abides by the law of the ancient stones held by the Stonekeeper, the yetis' leader. Migo's father, Dorgle, projects himself through the air each morning to hit a gong with his head, believing this allows the sun to rise. While learning how to ring the gong, Migo is distracted by the Stonekeeper's daughter, Meechee, whom he has a crush on, and misses the gong, landing outside the village. There, Migo witnesses a plane crash and finds a "smallfoot" (human), whom the yetis have taken for legend. Migo runs back to tell the villagers what he saw, but has no proof. The Stonekeeper banishes him from the village.
Migo is suddenly visited by Gwangi, Kolka, and Fleem who bring him to the Smallfoot Evidentiary Society (S.E.S.), which is led by Meechee. She convinces Migo to be lowered below the clouds despite the stones telling them that there is nothing underneath. After some hesitation, Migo agrees to go, but his rope snaps and Migo falls, where he discovers land.
At a lodge called the Yak Shack, Percy Patterson is a human film-maker of wildlife documentaries, but he has lost his integrity. He meets the pilot who saw the yeti, and in a desperate attempt to regain his fame tries to convince his assistant, Brenda, to dress up as a yeti for filming. She abandons him instead. Migo arrives at the Yak Shack and unknowingly scares Percy when trying to communicate with him. Migo takes Percy with him and they stop in a cave to wait out a blizzard. Percy films Migo, narrating that the Yeti plans to eat him, but finds that the video will take 28 hours to upload. He attempts to escape. While chasing after Percy, Migo's toe becomes caught in a bear trap and Percy takes pity on him by removing the trap and bandaging Migo's wound with duct tape. Percy agrees to go with Migo and they head back up the mountain, where they are reunited with the S.E.S.
The village is confused by Percy's appearance, but happily accept him and learn about his culture, much to Stonekeeper's dismay. Afterwards, Stonekeeper takes Migo inside the palace and reveals the truth to him: yetis used to live below the clouds, but were forced away by the humans who attacked them. To keep them safe, they created the stones and the clouds below them is steam secretly made by the yetis' daily tasks to keep them hidden. In order to protect the village, Migo agrees to keep up the lie by telling the yetis that Percy, who is beginning to experience high altitude sickness, is just a hairless wild yak. Stonekeeper takes Percy and locks him in a box, so Percy will become sicker. Migo later discovers that Meechee took Percy away to return him home. Migo jumps down the mountain with Gwangi and Kolka, following suit.
Percy's video of Migo has finally uploaded to great public excitement, but it makes the Yetis look wild and violent. After dropping off Percy, Meechee becomes distracted by the wonders in Kathmandu and accidentally causes a disruption. Meechee is attacked by the police, but is rescued by Gwangi, Kolka and Migo. The yetis try to make it back to the mountain, but are chased by a SWAT helicopter that is taken down by the Stonekeeper using his stones. Aside from Migo, the yetis escape to safety. Afterwards, Percy arrives on his snowmobile and reluctantly shoots Migo with a tranquilizer gun to save him. The police chase and capture what they think is Migo (actually Percy in disguise). Percy is arrested for public disturbance and fraud.
Back at the village, inside the palace, Migo and Stonekeeper explain the truth to the yetis while Migo apologizes for lying to them. Migo tells the others that even though humans may still be scared of the yetis, they should still try to communicate with them. The yetis leave the village and are confronted by the police. Percy, out performing community service, and Brenda emerge from the crowd and stand up for the yetis. The rest of the humans slowly welcome the yetis and accept them into their lives.
In a post credits scene, Percy is filming himself announcing his next episode of his tv show, but finds that one of his teeth are missing in his mouth due to Migo accidentally knocking one out earlier in the film.