Ash and his friends have made it to Porta Vista. After the odd adventure with the giant robotic Pokémon, they are glad for the break. Ash and Brock quickly change into some swimming trunks and jump into the water. As Pikachu swims around in a little inner tube, Misty shows up holding a Master Ball beach ball and says that she thought they were going to meet her at the snack bar. They stare at her for a moment, and Ash notes how odd it is to see Misty look like a girl. She gets mad, and throws the ball at his head, knocking him into the water. Further out in the ocean, Team Rocket surveys the scene from the Gyarados sub. After saying their motto, they note that there must be a lot of rich people on the beach. They plan to steal their money. Suddenly, Jessie sees a large boat speeding towards them. On board, Misty asks Ash whom the boat belongs to. He says that Brock borrowed it from somebody, but Brock tells him that he was just following Pikachu. Just as this sinks in, they collide with the Gyarados sub. The sub sinks down, and the boat goes out of control, careening into a dock. An old man runs out and yells at them for stealing his boat and wrecking his dock. Ash jumps behind Misty, who tells the man, whose name is Moe by the way, that they'd be willing to work for him to pay off the damage. Meanwhile, Team Rocket has swept up onto a beach. As they wonder aloud how they're going to fix their sub, a short old woman by the name of Brutella steps in front of them. She tells them that they are on a private beach, reserved for her patrons. James gets an idea to work for her to for her to get money to pay for the sub repairs, and she accepts. Back at Moe's restaurant, Ash and Brock try to get people to come inside, but they're either ignored or turned down. One couple passes up on them and goes into the restaurant next door. This just so happens to be Brutella's, and Team Rocket taunts Ash and his friends. Ash gets and idea and sends out all his Pokémon. He tells Squirtle and Pikachu to hand out fliers, Pidgeotto to keep the coals on the grill hot, Charmander to help with the flame broiling, and Bulbasaur to help Misty wait on customers. Soon, the restaurant is bustling. Team Rocket stands nearby and talks about how this is going to cut down on their money. Meowth decides to do a little sabotage. He blows the flyers away with a fan, makes the stove almost explode by putting gas in the fire, and slips up Bulbasaur and Misty with banana peels. The large crowd disappears rapidly. Ash and the rest sit dejectedly in the building, and Ash apologizes for messing everything up. Just as Misty says that she doesn't think they were all just accidents, Brutella shows up along with Team Rocket. She laughs at Moe and tells him that he needs to pay the money he owes her back. If he doesn't by the next day, she'll take his boat. After a last teasing from Team Rocket, they all leave. Moe tells Ash and his friends that there's no way he'll get the money in time, and explains that he had wanted to take a cruise around the world with his boat, but it seems he won't have a chance. Ash scolds him for saying such things and tells him that his dream has been to be a Pokémon Master. He hasn't ever lost sight of his goal, and neither should Moe. Moe feels better, but still doesn't know how they'll get the money. Suddenly, a familiar voice sounds from the front door. They look over and see Professor Oak and Mrs. Ketchum standing there. Oak tells Ash that the Beach Beauty and Pokémon Costume Contest is happening that day and that they should advertise the restaurant to the attendants. He tells Misty that she should enter, as there are cash prizes in both categories. It doesn't take long for Ash and his friends to get into action. Pidgeotto flies about, casting down fliers. The restaurant is packed once again, and Brutella looks on angrily. After a few hours, the contest is about to begin. Moe sits with Professor Oak and the Ketchums to watch. Ash's mother tells him that they're there with the Pallet Town Volunteer Patrol and Oak tells him that his mom still refers to him as "her little pumpkin." She reminds him not to eat junk food and to stay out of trouble, which reminds him of the boat accident. When she sees the look on her son's face, she asks him what's wrong. Moe speaks up, saying that it was him that got into trouble and Ash helped him get out of it and inspired him to follow his dream. The contest starts, and Brock is the announcer. The first contestant is Misty and her Starmie and Ash's Squirtle are working together to form a UFO. Squirtle sprinkles some water about making for a very nice effect. The next contestant is just a Pokémon costume, and it's Team Rocket's Ekans and Koffing dressed up as the legendary Pokémon Omastar (funny, it looks more like an Arabian nomad or something). The next contestant, or rather contestants kick them offstage. It's Gary and his cheerleading squad! Professor Oak tells Ash that he forgot to mention that his grandson entered, but Ash just growls. Gary gets a microphone and insults Ash, not without the help of his "fans" though. Enraged, Ash runs off to do something about it. The audience didn't really seem to notice Gary, which isn't surprising. As Brock says, there are six "beautiful girls" on stage at once. Backstage, Misty sighs, noting that the judges won't even give her a second look now. Meanwhile, Brutella tells Team Rocket that she knew who they were. She also informs them that she's fixed the Gyarados sub and, unless they do what she says, they'll have to pay plenty for it. They go to the sub and Brutella tells them to destroy the Beauty Contest so that Moe's customers will be scared away. Jessie and James respond that this is easy, for Team Rocket is skilled at destroying things. So much so, according to Jessie, that they can destroy things without even trying. They jump into the sub and set off. Back at the contest area, Ash challenges Gary to a Pokémon match. Gary refuses to battle such an "amateur" trainer Brock steps between the two before Ash's anger gets the better of him. The Gyarados sub pops out onto the beach and everybody starts to run around afraid, thinking that it's a real Gyarados. Ash grabs the microphone from Gary and tells everyone that it's not real, and they stop running around. Team Rocket gets ticked, and they fire a heat-seeking missile. Gary asks Ash what he's going to do next, and he sends out Pidgeotto and Charmander. Pidgeotto picks Charmander up and it uses Flamethrower. The missile is thrown off and it turns and heads toward Team Rocket. The sub's eyes bug out (whoa! How'd they do that?) and Team Rocket pedals it away. Unfortunately, they pedal directly into Brutella's restaurant. The bomb hits, and the building is blown up. Team Rocket and Brutella fly into the air. Later, Ash and his friends wave farewell to Moe, who is off on his cruise. Ash tells his mother that they need to go, and they set off. Professor Oak tells her that she should be proud of her son and she says she is. She looks down at the trophy in her hands, which reads "First Place in Our Hearts: Ash Ketchum". His family and friends will always accept him.