The kids are suppose to be painting the bell tower when they get into a water balloon fight. Mr. Ernst sees them and tells them that a inspector from the juvenile employment is going around and making surprise inspections. He tells them that the inspector can revoke his license to employ juveniles like themselves. He tells them not to full around. Mr. Ernst is standing under the bell tower when a paint can falls and hits him on the head. Mel, Brad, and Ted rush over to him, but he doesn't recognize them.
Outside the lodge, the kids asks Mr. Ernst about getting hit. He doesn't remember getting hit, but his head hurts. He still doesn't recognize the kids or the ranch calling it "the set of Gunsmoke". Ted asks him the date which he gets right as August 14th, but the wrong year 1969. Ted is about to correct him when Jake calls a meeting between the kids. Mr. Ernst tells them to call him T-Bone. Brad asks T-Bone his age which he says is 17. Jake says T-Bone is suffering from partial amnesia where he thinks he is a kid again. Jake says they have to wait until T-Bone snaps out of it or bumps his head again, but they have to play along until he does. Jake says if T-Bone finds out it isn't 1969 the mental shock could give him total amnesia. They must also keep him away from mirrors so he doesn't see his face. They tell T-Bone he is at summer camp for the week. Buddy takes T-Bone on a tour of the "camp".
Buddy shows T-Bone the bunkhouse where he quickly covers the mirror and takes down the calendar. He slips up and says his dad Mr. Ernst owns the "camp", T-Bone buys it saying that maybe him and Buddy are related. T-Bone asks Buddy about Melody because he is thinking about making a move on her. Buddy tells T-Bone that he is Mel's boyfriend.
While T-Bone is changing his shirt, Buddy tells Mel that they are going steady. Mel is reluctant until Buddy says it is either that or date his dad.
T-Bone with water balloons in hand is hiding up in a tree by the guest dining area. Jake is looking for T-Bone, when T-Bone starts chucking water balloons. He hit a man with a shirt and tie doing paperwork twice. T-Bone runs off while Brad and Mel tell the man that T-Bone is a guest recovering from a medical condition. The man says he is Mr. Carmichael, the juvenile inspector, and they are to have their boss meet him in his office right away. The man tells them that the ranch is about to lose its license and advises Brad and Mel to write up their resumes. He tells them not to mention to their boss who he is.
In the boys bunkhouse, the kids are panicking because they are all going to lose their jobs. T-Bone is coming and Buddy wants to hit him on the head with a wooden mallet, but Ted stops him. Jake tells Buddy if he hits T-Bone wrong he might give him total amnesia or kill him. Jake says that one of them has to play Mr. Ernst to meet with the inspector. Melody points out that the inspector saw them all during lunch. Brad says that T-Bone ran away before the inspector got a good look at him so maybe he could play Mr. Ernst.
In Mr. Ernst's office, Brad, Jake, and Melody are preparing T-Bone for his interview. Mel and Brad tell T-Bone they specialize in theatrical makeup and show him his reflection in a mirror. T-Bone buys it. The kids get Mr. Carmichael for the interview. T-Bone sends the kids on their way and offers Mr. Carmichael a martini. He tells Mr. Carmichael that Melody is taken, but he could put in a good word for him with Brad. Mr. Carmichael gets angry and leaves. The kids try to reason with Mr. Carmichael and they tell him the truth about the amnesia, but he doesn't believe them. T-Bone overhears the others saying it is his fault and he takes off. Buddy volunteers to go after him.
Buddy finds T-Bone in the bell tower. He tells them that the ranch will probably close and everyone will lose their jobs. Buddy says his father is out of town right now and should be back soon. T-Bone tells Buddy that he would love to live out there on a ranch. Down on the ground the other kids have Mr. Carmichael in a wheelbarrow. Mr. Ernst orders them to put Mr. Carmichael down. Mr. Ernst sends Brad and Danny to fix the bell tower, Jake for a rake, Ted to get a brush for Mr. Carmichael's jacket, and Melody for lemonade. Mr. Ernst tells Mr. Carmichael that he passed their test with flying colors and he can have the job of assistant manager at the Bar None. Mr. Carmichael says he isn't there for a job he is the inspector from the employment agency. Mr. Ernst says he thought he was an applicant for the job and the craziness was just a test for the job. Mr. Carmichael confesses that he told the kids not to tell them he was an inspector. He says that their jobs are safe and he wishes all employers were like Mr. Ernst. Mr. Carmichael leaves to write up his report.
Turns that T-Bone was putting on an act the whole time. He starts shaking the ladder in celebration and a paint can falls. T-Bone catches it, but hits himself in the head with the rake handle. They see if T-Bone is alright, but Mr. Ernst says no one called him that since he was 17. The kids celebrate Mr. Ernst being back to himself.
Outside the lodge, Mr. E is nursing his headache and tells the other he had a dream of him being a kids again and goofing off. He discovers the water balloons and tells them for the next 15 minutes to forget everything he's every said about water balloon fights.