Ash, Misty, and Brock are walking down a trail when they come to a fork. Brock checks the map, and tells them that the path on the right leads up a mountain. Misty resists, but Ash tells her that a "little hill" hasn't hurt anyone. Moments later, they find themselves in a snowy wonderland. Brock suggests that they go back and take the left fork, but Ash refuses.
After a couple of hours, however, they're still walking. Brock and Misty have broken out some blankets, and Misty is complaining again. Brock looks at his compass, which is being thrown off by the iron in the mountain. He informs Ash and Misty that they're all lost, and Misty yells at Ash for making them come with him. He sends out Pidgeotto, who flies ahead to look for a way off the mountain. After a few minutes, he flies back and points in the direction they should go.
Needless to say, not to far away rest Team Rocket. James and Meowth are shivering, but Jessie is immensely enjoying herself. She tells them about how her mother made her a "snow-gasbord" when she was a kid, which was composed of several foods made entirely of snow. James and Meowth stare at her, not believing the fact that she ate snow. She tells them that only new-fallen snow would do, and James almost shudders at the thought. He then says that they should take off in the balloon and head of Ash and his friends. They fill it with hot air, but it drifts away as they do their motto. They chase after it, yelling. Clouds close in and it starts to snow on Ash and his friends. Ash tells his friends that they should keep moving and they hurry on.
Back with Team Rocket, they were unsuccessful in catching up with the balloon. James and Meowth pant and Jessie stares at the snow. She tells them that she could make some snow rolls. She marches off in the direction of the balloon, telling them that she needs the soy sauce in it. The snow gets worse. Brock tells Ash that they should stop for the night, as it is getting too dark. Ash is resistant, but Brock convinces him. They're about to dig out a cave in the snow when a sudden gust of wind blows Pikachu out of Ash's arms. He dashes of to find him, but Misty and Brock are forced to stay behind.
The snow falls steadily as Ash searches for his Pokémon. After calling Pikachu's name for a while, he finally hears him calling to him. He follows the sound of his voice for a while and finally finds him clinging to an outcropping on a cliff. Ash reaches down and is about to grab Pikachu's hand, when he slips and falls out of reach. Ash sends out Bulbasaur, who sends down a vine for Pikachu to grab. Pikachu slips again, however, and starts to plummet down the side of the cliff. When disaster seems imminent, Bulbasaur catches him with two vines. Ash pulls him up and they share a warm moment of reunion.
Pikachu reminds him to get back to Brock and Misty, but he can't get back up the slope. He calls out for a moment, but soon gives up on that. He decides to dig into the snow, but his hands soon get too numb. He sends out Charmander, who melts out a deep cave with Flamethrower. Inside, he sends out Squirtle and Bulbasaur and with their help, they all plug up the entrance with snow. After this is done, they gather around Charmander who turns up his tail.
Meanwhile, Team Rocket has constructed an igloo. They're still cold, and Meowth holds up three burnt matches. They all imagine that they're in warm places (Meowth in a hot spring, James at a beach, and Jessie in a desert) and Meowth and James fall asleep. Jessie slaps them awake, telling them that they'll freeze if they don't keep moving.
Back with Ash and his Pokémon, Charmander's tail dies down. Ash returns him, but not without some resistance. It occurs to Ash that the Pokéballs are probably pretty warm, and he returns Squirtle and Bulbasaur. He tells Pikachu to get in his, but he refuses. They sit in a corner of the cave, shivering. Ash takes his jacket off and wraps all his Pokéballs up in it.
Suddenly, a hole opens up in the wall to the outside, and freezing air blows in. Ash sits in front of it, blocking the hole, but feeling the effects of the air's coldness. He orders Pikachu to get into his Pokéball, but he still refuses. Ash's other Pokémon pop out of their balls and cling to Ash. Crying, he hugs them and says that they'll "all be cold together."
The next morning, the snow has stopped. Charmander melts away the snow at the entrance and they all look at the sunrise. Ash hears Brock and Misty call down to him from above. After Onix brings them all up, Ash tells his friends about the cave he dug. They say that they were comfortable all night, as Onix dug into a hot spring. They notice Team Rocket's balloon, and Brock sends out Vulpix in order to heat up the air inside.
The igloo around Team Rocket has melted, and the notice the balloon flying overhead. They run towards it, and unwittingly dash off the edge of a cliff. Fortunately, they land in a hot spring, and sit contentedly.
The balloon floats over another mountain and Ash and his friends see a town. They're out at last. Team Rocket on the other hand, are in a quandary. The hot spring is too hot, but the air is too cold. How will they get out of this one?