Lilo is feeling upset with herself after Mertle gets a big fancy nice-looking hairdo.
When Lilo encounters a hair-eating experiment, Clip, she decides to get revenge on Mertle by placing it in Mertle's bedroom with plans on ruining her new hairdo.
Lilo's plan backfires and Clip eats all of Mertle's Mom's hair instead of Mertles and worse yet, Clip has escaped and is loose on the island.
Lilo and Stitch must track down and find Clip before everyone on the island goes bald.
Lilo learns to accept herself the way that she is and feel good about the way she looks.
Clip ends up being the perfect answer for problems at the salon, where she is repurposed, giving customers cool new haircuts.