
After the team surprisingly wins the final round, Mike discovers that Sulley has manipulated the equipment so that Mike would register a perfect score. Even having advanced so far, Sulley does not believe Mike can be a true scarer because of his lack of natural ability after Hardscrabble questions him. After that, Oozma Kappa uses their wits to advance all the way to the final round against Roar Omega Roar. To encourage the group, Mike arranges a secret visit to Monsters, Inc. Mike convinces the others that they have to keep trying, but Sulley and the others tell him that they'll never look like the other competitors no matter how much they train. The group is discouraged as they are now the laughingstock of the entire campus.

They then attend a party at Roar Omega Roar house where initially the other competitors appear to accept them, but they play fraternity pranks and humiliate Oozma Kappa instead. With the last-placing team in each round of the Games being eliminated from the competition, Oozma Kappa miraculously advances through the first round and survives by sheer luck when Jaws Theta Chi gets disqualified for using illegal protective gel. Meanwhile, Randy becomes a member of Roar Omega Roar and breaks off his friendship with Mike. Sulley expects to carry the team himself, but Mike believes that with enough training, the team can succeed. Sulley, seeing the competition as his ticket back into the scare program, offers to join, which Mike eventually reluctantly accepts. Mike tries to enter Oozma Kappa into the scare games but is told he needs one more member. He makes a deal with Hardscrabble if Mike's team wins, the whole fraternity including himself will be allowed into the Scare program, but if he loses he will be kicked out of the school. As the participants must be members of a fraternity or sorority, Mike joins Oozma Kappa, a small fraternity of misfit monsters.
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Unhappy in his boring new major, Mike decides to enter the Scare Games, an extracurricular competition involving a series of physical challenges that tests a monster's scaring ability. At the final exam, Mike and Sulley's rivalry gets out of hand, resulting in Dean Hardscrabble failing them both and dropping them from the program, which prompts Roar Omega Roar to kick Sulley out of the fraternity. Mike studies hard and repeatedly answers questions in class correctly, while the privileged Sulley, convinced all he needs is his natural scaring ability, begins to falter. Mike wishes to join but is denied, magnifying the rivalry between the two. Mike and Sulley chase the pig outside and struggle to capture it, but when Mike finally manages to do so, Sulley gets the credit, and is invited to join Roar Omega Roar, the elite fraternity on campus.

While the two bicker, the mascot steals Mike's treasured MU hat and escapes. While Mike is studying one night, Sulley inadvertently barges into his room in order to hide the pig mascot of a rival college. The entire class is also informed by Dean Hardscrabble, the stern Dean of the scare program, that they must pass their final exam of the semester in order to continue in the program. During the first class of the scare program, as Mike is answering a question, he is interrupted by another scare student, an arrogant large blue monster named James P. On his first day, Mike befriends his roommate, the nerdy and shy Randall "Randy" Boggs, who desires to be popular and has difficulty controlling his camouflage power. Roughly 12 years later, Mike is a scare major and is starting his first day at the prestigious Monsters University. The teacher asks what he has to say for himself, but Mike is happy and inspired to be a scarer when he grows up. Frank tells Mike his actions were dangerous, but is impressed with his ability to have sneaked quietly in and out of the room, and gives him his Monsters University hat as a souvenir. Mike watches Frank's scare performance, then follows him back through the door to the monster world.

As Frank prepares to enter a door to the human world, the children notice that Mike has slipped unnoticed to Frank's door, which he then enters before anyone can stop him. At Monsters Inc., the class meets Frank McCay, an employee of the company who works as a "scarer", entering the human world to scare children at night and harvesting their screams as energy to power the monster world. The movie opens with 6-year-old monster Michael "Mike" Wazowski on a school field trip to Monsters, Inc., a scaring company. Monsters University is the untold story of how Mike and Sulley became best friends and tried to become the best scarers in Monstropolis.
