In a beautiful mansion overlooking the ocean sits a prestigious and traditional dance academy. Miss McKenzie was formerly the owner of the once profitable academy, but was forced to sell the academy due to dwindling profits. A new anonymous owner has purchased the school and introduced a new vision to turn the school around by introducing a new jazz program with a new radical instrutor, Moon.
A new and unlikely student soon arrives at the academy. After losing his working class job, Vince hitches a ride with some people who are on their way to the dance academy. After arriving, Vince finds himself drawn to the music at the school. He executes some of karate moves to music and Moon is so impressed with Vince's style that he offers Vince a chance to study at the academy.
Moon and Miss McKenzie are pitted against each other as soon as Moon arrives. Moon is trying to introduce new and radical styles into the traditional ballet curriculum. Miss McKenzie and her Ballet School Director, Percy, plot against Moon to have him fired.
Meanwhile, Vince and a group of freestyle dancers start taking over at the school. Vince begins dating Jana, a fellow student, while Moon falls in love with Paula, one of his students. Miss McKenzie becomes determined to expose the relationship between Moon and Paula and have Moon fired.
The movie is full of impromptu dance scenes featuring freestyle and modern dance. Besides dancing at school, Vince and his friends perform in the street and in night clubs to please crowds.
With the academy's final production of the year quickly approaching, Moon and the dancers must make the show a success. Miss McKenzie, however, will stop at nothing to make sure Moon, Vince and the other freestyle dancers fail.