John is an 8 year old kid with no friends at all. One Christmas, his parents give him a teddy bear. He wishes for him to come alive. That wish comes true and 27 years later, John (Wahlberg) and Ted (MacFarlane) are still best friends, they live together and their favorite hobby is smoking pot and watching Flah Gordon. But, John's girlfriend Lori (Kunis) wants them to move on with their lives and get Ted out of the house. John and Ted's friendship will be tested.