The Bug City is a place full of littered things under a trailer. The city has buildings made of boxes and cans, sidewalks made of cardboard, and streetlights made of Christmas lights and lightning bugs. While there, Flik encounters several sorts of unusual bugs such as a granddaddy longlegs, snails, beetles, flies, mosquitoes, slugs, a cricket, a mime millipede, wasps, and other sorts of bugs living there,
While exploring, Flik finds a group of recently-fired circus bugs at the Bug Bar and mistakes them as warriors, due to their classic "Robin Hood" act. When P.T. Flea arrives in Ant Island looks for his missing troupe and blows Flik's cover, Princess Atta banishes Flik and the troupe to Bug City, however, this was a fatal mistake to Princess Atta; she puts herself and the entire colony in danger. However, thanks to Dot's advice, Flik, the Circus Bugs, and the colony were able to end Hopper's reign on Ant Island after Flik was wrongfully banished.
- During the part where Flik enters the Bug City, A113 can be seen on a cereal box.
- There is a box that has a picture of The Lion King Musical on it.
- Bug City is a parody of New York City but also resembles San Francisco and Chicago in certain aspects.
- The trailer and Pizza Planet truck that this city is located underneath also appears in Monsters, Inc., where Randall Boggs was banished to the human world and beaten up by the Trailer Son and Mom.