Mike Lane (Channing Tatum) has big plans but pays his bills through a series of odd jobs, most notably performing as the star stripper at Xquisite Strip Club. The club is owned by Dallas (Matthew McConaughey), who has dreams of creating an "empire" of strip clubs.Mike soon meets nineteen-year-old Adam (Alex Pettyfer) who has recently been fired from his construction job. Mike takes Adam under his wing and encourages him to begin stripping at Xquisite. Mike is introduced to Adam's sister Brooke (Cody Horn). Despite his on-and-off relationship with a woman named Joanna (Olivia Munn), Mike finds himself attracted to Brooke and promises to look after Adam.Adam falls further into the excessive lifestyle of the Xquisite dancers, using drugs and having sexual encounters with many clients. When Dallas announces he has a plan to move their act to Miami, Mike confides in Brooke that he is tiring of the lifestyle and wants to get a small business loan to pursue his dream of opening a custom furniture business. The bank declines his loan application and Mike realizes that he has to stay in the business to continue to pay his bills. Mike later attends a hurricane party at Dallas' house, where Adam becomes part of a scheme created by Tobias (Gabriel Iglesias), Xquisite's DJ, to sell drugs to Xquisite's clients, and is eventually given a package of ecstasy. Adam begins using drugs regularly, and Mike notices more of Adam's reckless behavior, to the chagrin of Brooke who is relying on Mike to protect him.A few days later, Mike and Adam perform for a private party at a sorority house, and Adam brings the package of drugs with him. At the party Adam gives a young woman an ecstasy pill, causing a brawl between Adam and the woman's boyfriend. Mike and Adam are forced to flee the scene. Later, at Xquisite, Dallas is infuriated to learn Mike didn't collect payment for the private show before the fight occurred. Also, Tobias becomes dismayed when he discovers that Adam had left the package of drugs, worth $10,000 in all, at the sorority.After that night's show at the club is finished, Mike and Adam take drugs and go to a club. Adam winds up vomiting and passing out, with Brooke finding him on the floor the next morning. Brooke angrily confronts Mike and accuses him of failing to protect her brother (as he had promised) and ends her friendship with him. Later on, Tobias' suppliers break into Mike's house looking for Adam. Realizing Adam lied to him about the drugs' worth, Mike gives them $10,000 (most of his life savings) to pay Adam's debt, unbeknownst to Brooke.Later, during the dancers' final performance at Xquisite, Mike decides he's had enough, knowing that Dallas has no loyalty to any of them and is driven by greed. Pretending he needs to use the restroom, he leaves through the club's exit and drives away to end up at Brooke's apartment, where he tells her he is through with stripping.After realizing Magic Mike isn't coming back, Dallas invites Adam to replace Mike as the front man of the dancers. Brooke then tells Mike that after he left her apartment earlier, Adam called her to tell her that Mike had paid off the drug dealers for him. They forgive each other, admit their mutual attraction, and decide to begin their relationship anew.