Ash dreams of being at the Pokémon League, with thousands of people cheering him on. He throws a Pokéball, but it grows huge and flies back at him. It opens, and starts to suck him in. Ash wakes up to see Mimie vacuuming his face. He yells at Mr. Mime for doing this, then goes downstairs to greet his mother and friends. He tells his mom what Mr. Mime did, and his mom tells him that Mimie cleans anything that looks dirty. Misty asks Ash if he could go another week without a bath, and Ash tells Mimie to clean the smirk off her face. Mr. Mime just stands there, and Mrs. Ketchum tells her son that he only does things she tells him to do. Brock tells Ash that they'd better eat quick so that they can get to Professor Oak's lab soon.
Meanwhile, Jessie and James dejectedly remind each other how they haven't stolen a single Pokémon, and they approach their Boss's mansion to tell him that they quit. Suddenly, the whole house explodes, and the mysterious Pokémon flies out, shedding its metal gear. Jessie and James notice the Boss picking himself off of the ground, and he asks them why they are here. James is about to answer, when a helicopter lands and picks him up. He tells Jessie and James to do their jobs, and the helicopter takes off. They dash off towards Pallet.
Ash and his friends arrive at Professor Oak's lab, and he welcomes them inside. He takes them into another room, and they see Gary sitting there. Gary says that he's surprised Ash came, and Professor Oak tells them to calm down. He then says that they are both Pallet Town's top trainers, to both of their surprise. He tells them that they will both be Pokémon masters soon. Ash's Krabby approaches with some refreshments, and Ash is happy to see him. Professor Oak reminds Ash that four Pokémon trainers left Pallet, but he and Gary have the most badges. Ash asks about the other two, and Professor Oak tells him that they just didn't have the skill to keep going. He praises Ash and Gary for getting so many badges, and Misty reminds Ash that the Pokémon deserve some credit as well. Ash wonders if they deserve more credit than he does. Professor Oak tells Ash that he can now participate in the Pokémon League. Ash is about to leave when Gary asks him where the League meeting. Unfortunately, he doesn't know, and he begs Gary to tell him. Professor Oak speaks up, saying that they Pokémon League meets atop of Indigo Plateau in about two months, and that there will be over two hundred trainers meeting there. He tells Ash that he and Gary should use this time to train their Pokémon, but Gary says that Ash would never be able to beat him.
Back at Ash's house, Team Rocket, dressed as reporters, ring the doorbell. They tell Mrs. Ketchum that they want to interview Ash for a show called "Pokémon Masters of Tomorrow." Suddenly, Mr. Mime dashes out, and starts sweeping them away. Mrs. Ketchum tells them that Ash is over at Professor Oak's lab. Team Rocket quickly thanks her as they are swept off by Mimie.
Meanwhile, at the lab, Gary asks Ash if he's happy with Krabby. He says yes, and Gary lets out his Krabby, which is much larger. Gary tells Ash that he rotated all his Pokémon so that they'd all get some experience. Brock agrees that that was a good idea, and Misty tells him that Ash always uses the same Pokémon. Professor Oak sits nearby, eating, and Brock tells him that he should intervene. Professor Oak tells him that he's a professor, not a referee, and refuses. Gary continues to dump on Ash about how he hasn't been a very strategic trainer, then asks him how many he caught. Professor Oak stands up from the computer he was working at, and tells Ash and Gary that Ash has seen 60 Pokémon, while Ash has seen over 100. Ash lets out a cheer, but Professor Oak tells him that Gary has caught many more than he did. Gary then tells Ash that he never took the time to check his Pokédex, he just went ahead and caught it. He then tells his grandfather to show Ash exactly how many Pokémon he has. He agrees that this is a good idea, and leads the way.
They enter the lab, and they see shelf upon shelf of Pokéballs. Professor Oak leads them to where Ash's Pokémon are kept, and there are quite a few. However, as Professor Oak points out, most are Tauros from the Safari Zone. He then tells Ash that Gary has caught more than 200 Pokémon. Ash gasps, and Misty concludes that he must've caught more than one of each kind. Gary tells Ash that having many Pokémon is the key to success, but he replies that it's better to make friends with your Pokémon, and make them strong. Professor Oak tells them that they both have very valid points. He tells them that, since they both have different personalities, they raised their Pokémon different ways. He goes on to explain that Pokémon should be treated with care and respect, and should be considered equal to their trainers. He tells them that each and every one of the Pokémon have become part of himself.
Meanwhile, outside somewhere, Team Rocket is making their way towards the research center. James and Meowth complain that they are tired, and Jessie kicks a rock against a tree. Suddenly, several Kakuna come down from the branches. Team Rocket looks at them nervously, and start to run, only to be chased by several Beedrill. They try to get away, but run into a Snorlax blocking the path. The Beedrill close in.
Back at the lab, Professor Oak describes his daily routine. First he checks on the Pokémon to make sure that they are OK, and lets some out to get some fresh air. He feeds them, and in the afternoon, he starts his research. Recently he has been studying the differences between Pokémon of the same species. He tells everyone that he built the reserve especially so that he could study the Pokémon in their natural habitat, and has come up with a new discovery. He tells them that Pokémon frequently take on the personality of the trainers who catch them. This gives Brock an idea. He says that since Susie trained Vulpix, and Vulpix loves him, that means that Susie likes him as well. Gary stares at him and asks what is problem with him. Professor Oak goes on to say that this trait of Pokémon only occurs when they are in frequent contact with their trainers. He tells Ash that, since Muk and Krabby have been staying at the lab, they have become somewhat attached to him. At this, Muk races up and jumps on the professor.
Elsewhere, Team Rocket climb up a mountain. James and Meowth continue to complain, and Jessie puts her hand on a Geodude. She throws him off, but a Sandshrew appears. The Sandshrew scratches her face, and flees. Jessie starts to sob, when a loud rumble is heard. Suddenly, an Onix rises up from the mountain, and starts chasing them.
Misty looks with amazement and the several water Pokémon Professor Oak has, and Ash asks the professor if he has every Pokémon in the world. He says that he does not, as there are some Pokémon people have never seen. Brock agrees, bringing up Togepi as an example. Ash remembers the mysterious bird he saw the day he left on his journey. Ash tells Professor Oak that he wants to find as many new Pokémon as he can, as does Gary. Gary tells Ash that he'll train them to be strong. Ash and Gary look at each other, and Misty wonders if they could maybe be friends. Gary asks Ash if he wants to have a battle, and Ash consents. They are about to start, when a loud explosion is heard from the Electric Pokémon Preserve. They rush over to see several Electrode and Voltorb sitting in a crater, with Team Rocket climbing out. Team Rocket jumps out, and Meowth tells Ash to hand over Pikachu. Professor Oak and Gary stare at Meowth in complete surprise that he can talk. Professor Oak asks him to talk some more, and he says the motto, with Jessie and James, of course. They get annoyed, however, that he is stealing the show, and beat on him a little.
Ash and Gary refuse to hand the Pokémon over, and Gary challenges them. They are about to comply, when a large herd of stampeding Tauros breaks through a fence and butt them into the sky. Professor Oak thanks Ash for saving the Preserve, as all the Tauros were his. Gary tells Ash that he is going to go home, as it's been a long day. He says that he and Ash can battle each other at the Pokémon League, and leaves. Later, Ash and his friends talk about the fact that Ash needs to start training for the Pokémon League, but Professor Oak has other ideas. He hands some boards and nails to them and tells them to work together to fix the fence. After all, he says, working together makes a people to be better friends. They start to work, with Professor Oak looking on.