In this episode, Danny hastily wakes up and gets ready for the last day of school, using his ghost powers to get there in time as summer vacation will begin afterward. As the ghost boy flies off, he passes by the Amity Park Penitentiary where Freakshow is still in prison from his previous episode, being interrogated by the Guys in White. He is questioned about the Reality Gauntlet to which he denies any knowledge until they show off the captured Lydia and their plans to use the glove to eradicate all ghosts, including Danny Phantom.
Desperate to get revenge on the ghost boy, Freakshow is freed from his chains and goes off to explain the gauntlet to the best of his ability, placing the Reality Gems in the compartment on the glove (The Gem of Life; with the ability to bring anything to life, The Gem of Form; which can change the shape of anything, and The Gem Of Fantasy; able to make your dreams come true). Placing the 4th and last gem, the power source (located as one of his earrings), Freakshow uses the Gem of Life, causing the Guys in White's weapons to come alive and twist themselves around them. However, the Gauntlet cannot be used to its full extent unless the wearer operates the gems in the correct order. As Freakshow does not know the order, he has limited power. He escapes with Lydia whom he frees, vowing to take over the world with him as their ringleader.
Meanwhile, Danny, Sam and Tucker are excited on their cross country summer vacation together; Danny is going to Cape Canaveral for the space program, Tucker is going to the San Diego Sci-Fi and Comic Book Convention, and Sam is going to Gothapalooza in the Nevada desert. But first, they plan to go to a Dumpty Humpty concert located near their school. Jazz then accidentally bumps into Danny who is making a thesis on ghost envy for her college entry.
Their summer vacation starts off wrong afterward when Lydia attacks the Dumpty Humpty concert with her tattoos. Danny manages to fend them off, then goes after his friends who are taken by two of Lydia's tattoos. There they reunite with Freakshow. Danny swiftly fights him, but is put at a disadvantage by the Gauntlet when he creates monsters out of two oil trucks through the Gem of Form and bringing them to life through the Gem of Life. As Danny fights the two, the Guys in White appear as well, causing Freakshow to create a marshmallow-like human from a cloud to crash land on both the Guys in White and the oil truck monsters. Afterward, he makes his escape with Lydia via a Circus Gothica train, using the gem to make it sprout wings and fly off. Danny takes his friends back to the concert though, much to Sam's complaint, merely stating he's on vacation and the Guys in White can handle Freakshow.
Back at the concert, Sam and Tucker research the Reality Gauntlet in a book apparently written by Freakshow; however Danny is more concerned on his summer vacation and the concert. The concert starts with the giant egg on stage opening only for it to be alive in itself, created by none other than Freakshow who comes up on stage. Lydia again kidnaps Sam and Tucker while Danny again fights. All this is being shown on the news, watched by the Fenton parents and Jazz (who doesn't want to go on vacation and instead work on her thesis). After Freakshow creates a spider out of a drum set, Tucker and Sam both grab onto a part of the gauntlet, Danny later joining in, each of them touching one of the three gems, accidentally activating its true power. As they struggle to hold on to the Gauntlet, Sam remembers reading that the Gauntlet has a self-defense mechanism, if someone who is touching a Gem thinks about hiding it, it will disappear and re-appear somewhere else, namely in the location they thought of. After Danny, Sam, and Tucker hide the Gems, they all fall back on stage where Freakshow once again leaves with Lydia. Danny, too weakened to follow is forced to transform back to his human state in front of hundreds of people, including the TV where his family were watching.
Sam and Tucker's parents enter the Fenton household where the parents blame each other for the current mess that is going on until Lydia captures them all. Back at the concert, the kids are all shocked Danny is the ghost boy. Even more chaos comes when the Guys in White arrive by jetpack, hoping to take in Danny to experiment on. Danny flies Sam and Tucker away, but quickly turns human again, his ghost powers apparently screwed up from the Reality Gauntlet. Sam however gets them away from the Guys in White via a mosh pit, the kids now cheering for Danny. They run off and are eventually rescued by Dash, Paulina, Kwan, and the rest of the football team, all of them willing to help Danny and his friends (since he has saved the world many times before). While the Guys in White search, the three (disguised as a football player, school mascot, and cheerleader respectively) are lead by their peers into a forest.
Danny and his friends make it back to the Fenton household, planning to get rid of the gauntlet Freakshow wears, but once inside, they are hounded by the Guys in White and their cohorts. As they interrogate Danny, Lydia (currently invisible) sends three of her tattoos to hide in each of the trio's shirts to keep watch. Danny activates the Fenton emergency button which literally causes the innards of the house to attack their enemies. The trio makes their way to the Opt Center afterward and activate the Fenton blimp. The Guys in White catch up, however Danny activates a button causing the blimp to turn into a jet plane which they use to escape (Danny turning it invisible to give them a further advantage), unaware of a tracking device the Guys in White managed to place on the plane.
The next day, Danny gets a contact from the Fenton Jetplane. Thinking it's his parents; he gets ready to confess about him being half ghost, but ends up getting a message from Freakshow. He blackmails Danny into getting the Gems back, as he and his friends know where they are, in exchange for their parents' (and Jazz's) lives, and to be dramatic, they are only given three days. With no choice, the trio states where they hid the gems and begins their quest to find them, starting at the space center in Cape Canaveral, Florida.
In the space center, a child finds the Gem of Life (activated by touch), but he throws it when it burns him, causing a space shuttle to come to life and attack the Fenton Jetplane. Danny goes ghost, turns invisible, and reaches the Gem of Life from the pilot's seat, turning the shuttle back to normal, but now falling from midair. Danny, having had a space simulation in his computer uses his knowledge to perfectly land the space shuttle before it could cause any damage. The Guys in White then appear via jet planes, using missiles to destroy the Fenton Jetplane. Luckily, Tucker and Sam escape via Fenton dune buggies and after Danny places the gem inside the Fenton Thermos for safety, the three make their escape. They make a pit stop at a diner where it's reported everyone is on the lookout for Danny and his friends, including the cops, so they quickly make their escape (their dune buggies now hovercrafts for faster travel).
Back in Freakshow's lair, Jack and Maddie lament over their son as half-ghost, getting an answer from Jazz on why he never told them. Afterwards, Freakshow comes over to taunt them, but Jazz declares he is merely suffering from Ghost Envy to which he vehemently denies. Meanwhile, Danny and his friends make it to Gothapalooza, only for them to find it a cutesy world of happiness and teddy bears. Inside, while Sam retches in disgust, Danny merely asks in a polite manner for the Gem of Form to which they easily give. Danny stores the gem in the thermos, but not before restoring Gothapalooza back to what it was before (much to Sam's relief). The Guys in White attack once more, this time in tanks, again sending missiles. They escape and hitch a ride on a truck delivering newspapers, the front cover showcasing Danny and friends. They head to their last destination with less than 24 hours left to save their families.
Back in Freakshow's lair, Freakshow confesses he indeed, possesses Ghost Envy, stating everyone, even in some cases, himself, loved ghosts more than him, something Jazz relates to. The trio meanwhile makes their way to Hollywood where news on Danny as the ghost kid has already reached its peak, so upon being sighted, Danny and his friends are swarmed by cameras. The trio escape into a subway system where they meet kids dressed as Danny Phantom and Sam Manson (But no Tucker Foley outfits which Tucker laments on in annoyance), heading for a train to the comic convention in San Diego. Inside, three nerds have found the Gem of Fantasy, causing them to turn into three super-villains from a comic book they dressed up as (Crystal Leviathan, samurai, and Empress She-Wolf respectively). Danny fights off all three as well as the Guys in White until he gets the gem back. With all three, they vow to stop Freakshow; however Lydia arrives, wraps the trio with her tattoos, and then warps them back to Freakshow.
Back in his lair, Freakshow masters the Reality Gauntlet and turns Earth into his own world of chaos, becoming their ringleader (complete with ringleader outfit). Afterward, he sends the trio's parents as well as Jazz, Sam, and Tucker on a deadly roller coaster ride. Danny tries in vain to save his loved ones, now in front of a live audience that Freakshow created. Danny quickly is turned into Jello by Freakshow, causing the roller coaster to run him over and apparently end his life. Freakshow then goes about turning every part of the world into his own creations. Danny is restored back to normal where he again tries in vain to rescue the others. Jazz quickly tells Danny to use psychology for he has Ghost Envy. Danny does so, teasing Freakshow with his powers, causing him more jealousy and ultimately to turn himself into a ghost. Using his Fenton Thermos, Danny then easily traps Freakshow. He quickly then uses the Reality Gauntlet to save his friends and family from falling into a pit of acid. Afterward, Lydia attacks, but Danny makes quick use of the gauntlet on her, causing her to turn tail and run off. He then turns Earth back into what it normally was.
Jack and Maddie come over and express joy over their son, still accepting him despite his half-ghost powers. Despite that, Danny still turns everything back to the way it was three days prior with only his two friends knowing of the events that have happened. Danny then takes Freakshow back to the Guys in White, turning him back into a human, as well as erasing their memories on their knowledge of who the half-ghost is. He returns home where the trio confess that they would rather not cross country due to all the excitement they had previously. Agreeing, Danny destroys the gauntlet and then flies off to continue the rest of his summer vacation.