The movie starts out with Spacely Sprockets in dire financial trouble, because they can't get their new project "Orbiting Ore Astroid" to function properly. To make things worse all of the vice presidents in charge of this project run off. In despiration Mr. Spacely uses his computer to find a new VP and it selects George Jetson. George goes home to tell his family the good news, however they are upset that they are going to have to give up their intrests to move away to the astroid.
As they move into their new home the Jetsons meet their new neighbors Rudy-2, Lucy-2, and their child Teddy-2. They also meet the Furbolo family and their daughter Fergie. The next day at work Rudy-2, who works with George, shows George how the plant works to prepare for the re-opening. While the men are at work Jane, Judy, and Lucy-2 all go shopping, while at the mall Judy wanders off and meets Apollo Blue whom she develops a crush on.
Later on that day at the plant re-opening George activates the machine only to have it malfunction yet again. Rudy-2 tells George of all the previous mishaps and warns him that they may not have been accidents but instead they may be warnings, and it may be better to return home than to continue. George refuses and orders repairs to be made, however the next day the machine malfunctions again. With Mr. Spacely growing angrier and more impatient George decides to stay overnight at the plant to figure out what is happening.
Elroy, Teddy-2, and tag-a-long Fergie sneak off and follow George to the plant, but Jane discovers they are missing and send Judy and Apollo to find them. At the plant Judy and Apollo find the kids, but they also find a small creature called a Grungee. This grungee leads them to the center of the astroid where it is revealed who keeps sabotaging the machinery. It turns out that the factory's drill is destroying the Grungee's home, and they have been trying to stop it. With the kids still missing Jane and Astro set out to the factory to find them, while there they meet up with Rudy-2. Rudy-2 stays in the factory whle Jane and Astro travel below, where they find George tied-up by the Grungees. George is furious until the others tell him the whole story.
While everyone is still below Mr. Spacely arrives at the plant and activates the drill against Rudy-2's protest. The drill knocks down a bunch of rocks almost hitting Elroy until some Grungees pull him to safety. Returning topside everyone tells Mr. Spacely to stop the drill, but when he refuses George malfunctions the machine. George explains to a furious Spacely that the asteroid is inhabited by the Grungees, but it is found out that he has known this all along. Mr. Spacely and the Grungees agree on a deal that lets the Grungees run the plant, but instead of drilling for ore the plant will recycle old sprockets to make new ones. Spacely then gives George his old job on earth back, and the family has to say good-bye to their new friends and return home.