Rydell is your typical 1950s mid-American High School: cheerleaders, wannabes, jocks, swots, delinquents, nerds and skids. Those carefree days of summer holidays are over and the kids and teachers return to school, fresh with stories from their summer adventures and romances.
Danny Zuko and Sandy Dumbrowski had the kind of summer you wanna tell everyone about, but, sadly, holiday romances, like summer nights, do eventually end. But when Sandy moves to a new school, they suddenly discover they are together for Senior Year.
Sandy is having trouble fitting in at her new school. She has made friends with her new neighbour, Frenchy, and she might even be able to join Frenchy’s crowd, The Pink Ladies, or perhaps become a cheerleader like super-involved Patty Symcox. Invited to the Pink Ladies’ pajama party, she tries to do things to the “pink” way, but ends up spending the whole night throwing up in the bathroom!
Danny’s world has been turned upside down by having Sandy turn up at his school. The Burger Palace Boys tease him about her but he casually laughs them off. With the money he has earned over summer, Danny’s pal Kenickie has bought an old car which he names ‘Greased Lightning’, and the boys all hope that the car will be their guarantee for romance, if they can get it started.
Worried that he might’ve blown it with Sandy, Danny turns up at Cheerleading practice to try to make it up with her. Just when he seems to be getting somewhere, Sandy gets a hint about Danny’s history with Patty Symcox, the Cheer Captain. Danny somehow finds himself promising to try out for the track team to get Sandy back.
Sandy’s neighbour Frenchy hasn’t been doing so well, either, and she has decided to quit school and enroll in Beauty School. After her last day at Rydell, the Pink Ladies and the Burger Palace Boys have a farewell party for her in the park. Sandy, still angry with Danny, finds a way to crash the party and is confronted by Danny. When Rizzo makes fun of her, Sandy storms off and Danny asks Rizzo to the dance instead.
Saturday night is the High School Hop, hosted by local radio station, WAXX. Kenickie turns up with a blind date, the aptly-named “Cha-Cha”, but Sandy has no one to take her and stays home, listening to the dance on the radio and wishing that she was there with Danny. When its time for the Hand Jive contest, Kenickie and Rizzo dance together and Danny is left with Cha-Cha, who turns out to be every bit as good a dancer as her name suggests! They win the contest, and Danny scores the prize of free tickets to the Drive-In, hoping to be able to take Sandy in Greased Lightning.
A few days later, and Frenchy’s time in Beauty School isn’t all she thought it would be, and her hair is now an embarrassing bright pink! She has to decide whether to go back to high school or find a job. Enter her very own guardian angel, but despite his persuasive powers she just can’t face going back. Remember, stay in school, kids!
The Burger Palace Boys have troubles of their own when it turns out Cha-Cha was the girlfriend of the leader of rival gang The Flaming Dukes. The rival gang schedule a rumble in the streets, but their best street fighter Danny is now a member of the track team and he is tied up at training.
Danny finally convinces Sandy to come to the Drive-In with him, but it doesn’t go as planned for either of them. A few days later at Pink Lady Jan’s place, Sandy and Danny are still not talking to each other. It seems as if everyone is at odds, even Rizzo and Kenickie. The party breaks up early and Rizzo confronts Sandy. Faced with Rizzo’s challenge, Sandy finally finds her mojo. When Danny sees her transformation, sparks fly like never before...
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