The scene was left off with the gang discovers that Sparky is right next to them, and if Sparky is here, Richie is here. Richie comes out to Sparky and finds Ash there as well, both shocked, they haven't seen each other since the Indigo League. They catch up on what's going on, Ash asking what Richie's doing here. Richie explains that after the League, he heard about a mysterious Pokemon here and spent extensive time researching the location. Ash is only here, well because he first saw it during his trip back from Cianwood and the other reason would be he saw it during his adventure in the Orange League. According to his sources, Richie thinks that this Pokemon is on an island nearby, so they take small boat over there.
Meanwhile on the island, a kid is swimming around with a Lanturn, but a shadow seems to be under the water as well. The kid seems to be aware of it, almost like it's his friend. When he sees the gang coming on the boat, he quickly tells the shadow to go hide. They walk to him and ask about this island, since he seems to be here already. First things first, he says he's Osamu, just another kid around the parts. Ash asks if he knows anything about the mysterious Pokemon that's supposedly around here. Osamu seems a little nervous at first, almost as if he was faking his uncertaintity. With no answer, the gang goes off to comb the island. When the coast is clear, something pulls Osamu under, a child Lugia! He comes back up along with the child Lugia, but it seems they were being spied upon. Underwater, a Team Rocket lab resides and a Rocket reports to Dr. Number. (except he messes up the name) Dr. Number now knowing about the Lugia dispatches a submarine for an attempt to capture it.
With the child Lugia no longer a secret, they ask Osamu why the child Lugia is friends with him. Osamu explains a while ago that he and Lanturn was caught in a storm while swimming. The waves being too rough, sends him under the water with no help. Except it turns out later that he's back on land with the child Lugia by his side, the one who had saved him. After that, the parent Lugia had soon shown itself to him. Ash says he saw the parent before, but not the child. Then they turn to Luka, she explains that the Silver Feather responds with the presence of the parent Lugia, she just wants a glance. Soon however, the parent Lugia swims out of the water next to them, with a angered look on its face. The Silver Feather starts to glow red in sign of that. Everyone starts to convince the parent that they won't do anything to the child, which eventually calms it down. The child goes back to the parent and they go off swimming for a while. Ash knowing that Luka has diving equipment asks to see what they're doing. Underwater, the parent Lugia is feeding the child who then goes towards Ash and gives him a playful headbutt. Above the water, Luka catches the parent jumping above the surface along with the child.
Back at the Rocket's lab, Jesse and James look around a bit in their new uniforms. They find their way to where Dr. Number is seeing that Butch and Cassidy are giving their report. (and yet again mess up his name) Dr. Number does want something so Cassidy orders Jesse and James (though she doesn't know it's them) to go get it. Jesse starts to go into a tantrum but James politely goes out with her. Jesse is dying to get even with them.
Back on land, Osamu is swimming with the child Lugia once again when they notice another child Lugia... Or so it seems. The original child Lugia goes after it, thinking it's another Lugia, but Richie figures out that it's a decoy. Except it's a little too late when the decoy goes out and the child following it, the decoy becoming a cage. Soon, Butch and Cassidy's sub comes out and they laugh at them, except Jesse, James, and Meowth pop out in their Magikarp sub to try to grab the catch. Jesse and Cassidy argue for a while and eventually fight each other, Cassidy winning, causing a Smoke Screen to get away with the child Lugia! After the smoke clears out, everyone notices that the child Lugia is gone... and this could lead to some serious trouble...

Thanks to Xeno Lugia for writing This for us