Rather than featuring one continuous narrative, the film is a collection of short films about Jackson, several of which are long-form music videos from Jackson's Bad album. The film is named after the dance technique known as the moonwalk, which was one of his trademark moves. The name of the dance move was dubbed by the media, not by Jackson himself; however, he did choose the title of the film himself.
He uses his sprites from the game Moonwalker. The story, which is taken from the Moonwalker film, follows Michael, using various music and dance related abilities, on a quest to save kidnapped children from the hands of the evil "Mr. Big". The games incorporated synthesized versions of the musician's hits, such as Beat It and Smooth Criminal. The games have now achieved cult status and are remembered for being a memorable point in Jackson's change to a different stage persona from Thriller, to Bad.