We begin with the gang taking a rest in some city, while Todd takes a picture of Togepi. Suddenly, a huge TV screen on the side of a building reports great weather. After that, a commercial pops up for the Five-Star Breeding Center: where they believe in pokémon love power and luxurious accommodations that enables their guests to evolve. Pokémon Breeding Centers, the gang informs Ash and us are places that take care of pokémon for kids that can't do it themselves; good ones are able to evolve pokémon. The Breeding Center is being run by a guy and a girl (whom Brock goes ga-ga over), and there's a huge line in front. Misty decides to leave her Psyduck there in hopes that the center can improve its intelligence and stupid look.
As the gang departs, Ash believes Misty is just going to abandon Psyduck there, but Misty says she would never do that. Then, Todd notices a restaurant that advertises all-you-can-eat for free. Misty is excited, but the rest of the gang thinks there's a catch. And there is: the restaurant owner comes out saying that you can eat all you want for free if you show him his favorite pokémon: a Psyduck. So, everyone runs back to the center, but it is closed. Misty, ever-hungry, runs to the back to try and get in and finds the door open. The gang discovers a basement filled with tons of cages holding sad pokémon, including Psyduck. A crane and conveyor belt brings caged pokémon to the next room where the center owners are. They set up this breeding center to steal pokémon. Our heroes overhear them and decide to that the evil-doers by having Todd take pictures to show to the police. Meanwhile, Team Rocket's Boss calls the center owners who are introduced as Cassidy and Butch. It is revealed this whole scheme was devised by Team Rocket without Jesse and James' knowledge, since they seem to mess up everything.
As Todd keeps taking pictures, his flash gets the attention of Butch. Butch decides to investigate and our heroes worry. But when Butch enters, all he sees is a sad Pikachu flashing electricity. After he leaves, Ash congratulates Pikachu on a good job of hiding them. With enough pictures, they want to leave, but Misty won't abandon Psyduck. As she struggles to free it, the window rattles and out pops Jesse, James and Meowth, who are here to steal the pokémon. Our heroes confront them, and the two groups begin to argue. Suddenly, Cassidy and Butch come out. They reveal themselves as new members of Team Rocket with a much nastier version of the motto (To INFECT the world with devastation, To BLIGHT all peoples within our nation). Jesse and Cassidy know (and dislike) each other, but Cassidy threatens to reveal to the Boss that Jesse and James were about to steal his pokémon. Our heroes take this opportunity to run, and in the confusion, Jesse and James run away, too. But then, James stops to get his Weepinbell that he left here, which evolved into a Victreebel. Because of the delay, Cassidy and Butch are able to capture them in a cage. As ou heroes run to the exit, only Ash, Brock, and Todd get captured in a cage and Butch takes Todd's camera. Misty, Togepi, and Pikachu are able to escape. Then, Butch and Cassidy call Officer Jenny over saying that all of them are pokémon thieves. So, they are all carted away to jail.
Misty figures that if she can get Todd's camera, she'll be able to clear her friends. In a little disguise, she returns to the center the next day to retrieve Psyduck. While Cassidy gets Psyduck, Pikachu stealthily retrieves the camera. At the jail, Misty shows Officer Jenny who the real culprits are, freeing our heroes (but leaving Team Rocket in jail). Our heroes confront the other Team Rocket who send out Raticate, but Pikachu stops it cold and Bulbasaur wraps them up in vine whip. Officer Jenny then takes our heroes back to the restaurant where Misty happily feasts and the owner is delighted at seeing a Psyduck. Meanwhile, back in jail, Jesse and James begin to dig their way out. At the fork in the road, later that day, Todd decides to go off to the mountains to take more wild pictures of pokémon, while the rest of the heroes go off to Cinnabar Island. With fond farewells, the gang heads off into the sunset