As the camera pans down on another serenely blue ocean, Ash, our hero from Pallet, is admiring his three orange league badges along with his friends Tracey and Misty. The narrator announces that he only needs one more of these badges to get into the Orange League. Pikachu turns the gang's attention to a large speedboat coming straight at them from behind and after a narrow miss the driver leans over to introduce himself.
Misty interrupts becoming very defensive towards Togepi and demands an apology for "almost" hurting it. The driver, Tad, says that Misty shouldn't be mad because it makes her face look like a Tentacruel. Misty takes this as a complement due to her love of water Pokémon. After welcoming the group aboard his boat Tad explains that he has heard about Ash from the gym leader he fought at Troveta Island and how Ash has a reputation for using pure power to win matches. Tad is excited by this and suggests a Pokémon battle on the nearest island. Ash accepts the challenge. The scene switches to Team Rocket who are, surprisingly enough, on the island that the match has been planned to take place. Meowth spots the boat with the "Twerps" on board and they decide that this is another chance to capture Pikachu.
The match begins, two on two. Ash chooses Pikachu and advises him to battle hard so as they would have the advantage. Tad assesses the competition and chooses a Poliwrath wearing a gold belt to battle first. Ash scans it with his Pokédex and is told that its powerful muscles give it extremely effective attacks. Misty enquires as to the belt and Tad explains that it was an award given to him back in his hometown after Poliwrath beat all of the other Pokémon that was sent against it. Tracey advises Ash that Tad's strategy of water verses electric may be a trick but Ash seems confident. Pikachu starts the battle with a Thunderbolt but Poliwrath dodges is with Double Team. After several attempts Pikachu's electric attack connects and Poliwrath is stunned. It manages to shake of the effects of the jolt and uses Hypnosis as a counter-attack, Pikachu is sent to slumber land and is finished off with Water Gun. Now Ash decides he needs his own "power Pokémon" to battle and to no one's surprise and everyone's dismay, sends out Charizard. Misty loses confidence of Ash's victory immediately as Charizard uses Ash's head for Flamethrower practice and then takes to the sky. Tad says that Charizard is powerful but because Ash can't control it, it's useless. Charizard continues skimming the water but a well-aimed Water Gun forces it to land. Enraged, Charizard launches continuous Flamethrower attacks but it is ineffective against Poliwrath.
Tad becomes impatient and tells Poliwrath to finish it with an Ice Beam. As it hits Charizard, it freezes into a block of ice and falls to the ground. Ash immediately begins hacking at the ice with a rock, managing to free its limp head. The flame on its tail begins to die down and as Tad walks away he mentions a rematch when Ash can handle his Pokémon.
Evening sets in and the gang tries to defrost the frozen Charizard by placing it in the center of a ring of small log fires. As a desperate Ash rubs Charizard's back he realizes that his hands have been rubbed raw but says that it doesn't bother him. Charizard wakes up and struggles for a moment, but soon loses strength again and passes out. Misty and Tracey then decide that they should help and begin rubbing Charizard's back as well.
Charizard wakes again but this time remains calm. Ash tells it that when it is better it can use its Flamethrower again, even to burn Ash! But he reminds it that rest is important now. Ash begins to talk about how he's not the best trainer in the world but only wants what's best for his Pokémon. Charizard thinks about the adventures he's had with Ash. This reminiscing causes Charizard's tail flame to grow a little brighter and the crew continues rubbing, even Pikachu joins in.
Morning sets in and Charizard wakes up to find Ash and chums sleeping by him. Its tail flame is burning as bright as ever and when Ash wakes up he is extremely happy. Suddenly the ground starts to shake. Something bursts through the surface and blasts Pikachu into the air. It lands straight into the mouth of Team Rockets newest toy, a giant mechanical mole. The motto is said, again, and is followed by evil cackling as Pikachu tries to escape from their shockproof box. They begin to drill underground and Charizard makes indications for Ash to jump on his back. Ash jumps on and they continue down the hole that Team rocket dug.
After appearing on the other side Team Rocket are pretty confident that they can't be stopped until they are caught by an angered Charizard. It breaks the drill, freeing Pikachu. Meowth, however, has a back-up plan. Pushing a red button releases two buzz saws that attack Charizard. As it jumps around trying to dodge them, Ash is knocked to the ground. Charizard is furious that Team Rocket hurt the master that he has learned to respect and uses Rage. A ball of intense flame hurtles towards Team Rocket causing them to "blast off" into the distance.
Seeing that Ash can finally control Charizard Tad, who has arrived on the scene by now, reiterates his invitation to a rematch. The theme music begins to play as he sends out Poliwrath. Charizard has fond memories of the last match and accordingly lets out a roar of anger. Poliwrath starts of with Water Gun but Charizard, as commanded by Ash, flies into the air and releases an Ember. Poliwrath douses it with a second Water Gun. Charizard uses Take Down, but it is countered with Mega Kick. Poliwrath powers up another Ice Beam. Remembering what happened last time, Ash shouts to Charizard to fly away. Charizard picks up Poliwrath and uses Seismic Toss. With Poliwrath knocked out by the impact of the throw, Ash is declared the winner. So Charizard finally obeys Ash, will this be his next step toward victory?