Miley Stewart (Miley Cyrus) is struggling with her alter-ego and her popularity as Hannah Montana and keeping her double-life a secret from the media but Oswald Granger (Peter Gunn), a sneaky undercover journalist for celeb magazine BonChic, becomes suspicious and vows to uncover her secret. Later, Miley (as Hannah) ends up in a fight with Tyra Banks over a pair of shoes that she wanted to buy for Lilly (Emily Osment) as a birthday present. When Oswald secretly follows her limo to the party, Miley is forced to attend as Hannah instead of herself, resulting in the guests turning their attention to her instead of her Lilly, especially when Hannah is accompanied by Steve Rushton and Days Difference in her performance of "Let's Get Crazy".Oliver Oken (Mitchel Musso) and Rico Suave (Moises Arias) try to stop Lilly from leaving, but the party is ruined by Rico's exploding "Happy Birthday Lilly" cake. Upset at Miley, Lilly accidentally tells Oswald that Hannah is from a place called Crowley Corners, Tennessee, not realizing that he is a journalist.

Robby (Billy Ray Cyrus) is furious over the fight between Hannah Montana and Tyra Banks reported over the newspapers and her general behavior over the past few months. He tells her that as Hannah she is going out of control and needs to gain perspective and remember who she truly is. Instead of leaving for the World Music Awards in New York on a private jet, Stewarts land in Crowley Corners, Tennessee, their hometown, for Miley's grandmother Ruby's (Margo Martindale) birthday. Miley is angry at her father for the switch but Robby points out that this is the life she could've been leading if she wasn't famous. Despite Miley's protests, Robby decides to spend at least two weeks in Crowley Corners and ends up falling in love with a woman named Lorelai (Melora Hardin). Miley eventually warms up to her hometown when she rekindles a connection with childhood friend Travis Brody (Lucas Till) after he helps her with riding her old horse, Blue Jeans.

Nevertheless, Miley is eager to resume her Hannah duties and becomes chastened after Robby snaps that she seems to want to be Hannah Montana more than she wants to be with her family. Oswald, acting on Lilly's tip, follows Miley to her hometown. Miley takes the opportunity to try to write new songs but when she is ignored by Travis, she develop's writers' block. Meanwhile, there is a firm battle developing with the residents of Crowley Corners and a team of developers who are planning to destroy the meadows and build a shopping mall on the site. At a barn party that night, several singers contribute to the charity to save Crowley Corners, singing "Back to Tennessee" by Billy Ray Cyrus (singing as Robby Ray Stewart), and "Crazier" by Taylor Swift (as herself). Miley sings as herself with "Hoedown Throwdown" until the mall developers arrive. Travis suggests that Miley ask Hannah Montana, whom she claims to know from saving the singer's life in a surfing accident, to make an appearance to support the town, unaware that is Miley's alter ego.

Miley doesn't know what to do without exposing her secret or letting the town down but to her surprise, Lilly arrives, disguised as Hannah Montana along with the band and crew, offering to help. As the two make up, Miley confides in Lilly that she has been having rough time adjusting to farm life while trying to be herself and Hannah. Oswald sneaks up on the girls and takes pictures of them, believing Lilly to be Hannah Montana. That is when Lilly realizes she has inadvertently led Oswald to Crowley Corners and apologizes. The town is overjoyed to have Hannah Montana in town but Travis is unimpressed and admits to Hannah that he has had a crush on Miley for some time. As Hannah, Miley urges Travis to ask Miley out and he does. Miley accepts, but she has already been invited to dinner with the mayor by Lorelai.

Miley tries to be in two places at once but accidentally lets her guard down and is caught by Travis and a little girl mid-switch. He is understandably confused and rejects Miley, calling her a liar. Miley is devastated and Robbie breaks up with Lorelai to tend to his daughter. Miley finishes her song "Butterfly Fly Away", which she and Robby Ray sing together to cheer up. Miley finishes the chicken coop that she and Travis were building. He finds it and is touched by the gesture and after hearing the Hannah Montana song "Rock Star", Travis decides to go to the concert to support Miley.

Seeing Travis show up, Hannah suddenly stops midsong. She explains to the crowd that she cannot live a lie anymore, especially when she is home. Hannah then removes her blond wig, revealing that her secret identity. She then sings her original song "The Climb." Afterwards, the crowd pleads with her to carry on being Hannah, promising not to reveal her secret, but Oswald is in the crowd and takes a picture. His twin daughters beg him not to reveal Miley's secret and he accepts, quitting his job. Miley kisses Travis and then returns to the stage to finish with the song, "You'll Always Find Your Way Back Home". Miley leaves Tennessee to lead her double life again but with greater perspective and a better attitude.