Mike Lane has big plans for a business of his own but pays his bills through a series of odd jobs, most notably performing as the star stripper at Xquisite Strip Club, a club owned by Dallas, who has dreams of creating an "empire" of strip clubs.
Mike soon meets 19-year-old Adam, who has recently left school, and is looking for a construction job. Mike takes Adam under his wing and encourages him to begin stripping at Xquisite. Mike is introduced to Adam's sister Brooke. Despite his on-and-off relationship with a woman named Joanna, 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, 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 where 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 the next 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, where Brooke finds him on the floor the next morning. Brooke angrily confronts Mike about his lifestyle, and ends her friendship with him. Later on, Tobias' suppliers break into Mike's house looking for Adam. After 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, before the dancer's final performance at Xquisite, Mike decides he has had enough. Knowing that Dallas has no loyalty to any of them, and is driven by greed, Mike leaves through the club's exit. He drives away to end up at Brooke's apartment where he tells her he is through with stripping.
After realizing 'Magic Mike' is not coming back, Dallas invites Adam to replace Mike as the frontman of the dancers. Brooke and Mike realize they have an attraction for each other, and make plans for breakfast.