The episode starts with Stephanie and Barnett rescuing a diver in trouble. Baywatch hosts the Special Olympics for the first time. The Olympics is held by Mitch´s old friend and elite gymnast Mary Lou Retton, who won 5 gold medals in the 1984 Olympics. She asks Mitch to take care of a troubled kid named Darnel while Stephanie to take care of a girl named Sammy. Darnel´s father abandoned him when he was a little kid and Mary Lou has managed to track him down.
During a race, Darnel pushes his opponent in order to win and the coach for that team wants Darnel disqualified. However, Mitch talks to Darnel and Mary Lou talks to the other boy´s coach and they agree to let him stay in the Olympics if Darnel improves his sportsmanship.
Meanwhile, Stephanie befriends Sammy who wants to be a gymnast. However, she doesn´t think that she´s good enough. To change her attitude, Stephanie teaches Sammy to believe in herself. During the final race, Mr. Shepard shows up to watch his son compete.
During the race, Sammy falls and Darnel helps her to win instead of winning himself. After the race, Darnel gets to meet his father Carl. Darnel also wins the Best Sportsmanship Award. Later, Carl brings Darnel home to his new family for the weekend