Act I

Narrator Lonny sets up the story: In the late 1980s, an aspiring rocker, Drew Bowie, works as a busboy in the Hollywood bar/club The Bourbon Room, owned by Dennis Dupree ("Just Like Paradise/Nothing But A Good Time"). He falls instantly for a cute girl, Sherrie, who arrives from Kansas hoping to make it big in acting ("Sister Christian"). After being hired by the bar, Sherrie urges Drew to go after his dreams ("I Wanna Rock").

German city developers, Hertz and his son Franz, convince the city's mayor to abandon the "sex, drugs and rock-n-roll" lifestyle of the Sunset Strip to introduce "clean living" into the area, much to the anger of the Mayor's city planner, Regina. ("We Built This City"). It is revealed that the Bourbon will be torn down in the process, and Dennis comes up with the idea to get money by having rock star Stacee Jaxx play his last show with his band Arsenal there ("Too Much Time On My Hands"). Regina begins protesting Hertz and Franz ("We're Not Gonna Take It").

Meanwhile, Sherrie can't get along with her parents over the phone, and Drew struggles to write lyrics that mean something ("More Than Words/To Be With You/Heaven"). Sherrie then accepts Drew's invitation to have a picnic at a place overlooking Los Angeles ("Waiting For A Girl Like You"). There, he mistakenly suggests that the two are just friends to calm their nerves, disappointing both of them and ruining the date.

Stacee Jaxx arrives at the Bourbon and gives an interview about his life ("Wanted Dead Or Alive"). Thinking she means nothing to Drew, Sherrie is immediately smitten. The two end up having sex in the men's bathroom ("I Want To Know What Love Is"). Subsequently, Drew proves his musical ability in the club and is chosen to open for Stacee. Stacee tells Dennis to fire Sherrie before Arsenal begins performing, and his guitarist ends up knocking him out. A record producer in the club suggests Drew take over, and then offers him a contract, which he accepts, and he angrily brushes off Sherrie when she is fired ("Cum On Feel The Noize"). Regina continues protesting ("We're Not Gonna Take It [Reprise]").

An upset Sherrie meets Justice, the owner of a nearby strip club (though she clearly prefers the term "gentleman's club") called the Venus Club. She relates to Sherrie's story, saying that many of the small-town girls hoping to hit it big in LA end up making a living as strippers. Much to her dislike, she accepts Justice's offer to work in her club ("Harden My Heart/Shadows of the Night"). Everyone finds themselves alone - Drew signing with the record company, Sherrie fending for herself, Regina protesting, Dennis defending his club ("Here I Go Again").

Act II

Hertz and Franz begin demolition on the Sunset Strip, alienating them from each other as Franz falls for Regina and sees "the error of their ways". Dennis and Lonny join in the fight with little success ("The Final Countdown"). Meanwhile, Drew's rocker image is upsetting the record producer, and Sherrie is learning how things work at the Venus Club ("Any Way You Want It/I Wanna Rock [Reprise]"). They then meet on the street, she embarrassed with her job and he admitting that his record company is turning his image to that of a boy band. They argue and Sherrie admits that she was crazy about Drew, but he said they were friends. They sadly part ways ("High Enough").

Stacee arrives at the Venus Club and is pleased to see Sherrie there, and after being forced to give him a lapdance, she subsequently beats him up while dancing ("I Hate Myself For Loving You/Heat Of The Moment"). Drew arrives to admit his feelings to her, but become disheartened when he sees the two in a suggestive position. Justice later tells Drew that as soon as he left, Sherrie punched Stacee in the jaw.

Regina continues her protest against the destruction of the Strip, but yields no success. She convinces Franz to stand up to his father if he does not believe in this cause. Franz admits he's had dreams of his own, namely to open a confectioner's store back home in Germany. He finally rebels against his father and admits his love for Regina ("Hit Me With Your Best Shot"). Dennis and Lonny, upset at the loss of The Bourbon Room, hilariously suggest they had feelings for each other ("Can't Fight This Feeling").

Sherrie decides to leave the strip club after upsetting Drew, and Justice tells her that she had a similar experience with her first love. Everyone is upset as they move on with their lives ("Every Rose Has Its Thorn"). Drew realizes none of his dreams have come true- he still isn't a rock star, and Sherrie has left for a midnight train. Lonny arrives to tell him to make his own destiny; its up to him to get the girl. He decides to go after Sherrie ("Oh Sherrie"). He reaches her in time, and they realize their love was always there, and forgive each other ("The Search Is Over").

In the end, the Bourbon Room is spared demolition and washed-up Stacee Jaxx (who has been charged with statutory rape) has since fled to Uruguay ("Renegade"). Franz makes up with Hertz, and opens his confectionery store in Germany. He and Regina have a long distance relationship. Dennis passes away. Sherrie and Drew move to Glendale and have a child, and Lonny notes how in Los Angeles, sometimes the dreams you come with aren't always the dreams you leave with, but they still rock ("Don't Stop Believin").