In Toy Story 2, after Woody is kidnapped, Buzz goes out on a rescue mission to bring him back home. The two toys then work together to reunite with Andy, and by the end of the film, they become best friends. Following a successful rescue operation, Buzz thanks Woody as they shake hands, and their friendship is born. After Buzz is taken outside to be blown up by Sid, Woody pleads with the Mutant Toys residing in Sid's room to help him rescue Buzz. The relationship between the two toys starts to improve from that point. When Buzz finally finds out that he is a toy, he becomes too depressed to help Woody, but Woody gives him words of encouragement (while also confessing how inferior he feels because of how Buzz can do so much more than him, briefly becoming depressed himself), and Buzz gradually comes to terms with what he truly is. Their misunderstanding of each other eventually leads them to being separated from Andy, captured by Sid, and subsequently taken to his house.

At the beginning of Toy Story, Woody and Buzz were originally rivals with Woody showing jealousy toward Buzz for apparently being replaced as Andy's favorite toy and Buzz thinking himself to be a real space ranger.

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