Misty is playing with Poliwhirl and the others in a river, whena tough Poliwrath appears. The Poliwrath turns out to be a trainers, and it's owner insults Misty. BTW, for the rest of the episode, the kid refers to misty as red.
The gang enter a Seaking catching competition, as does the kid, who is the champion, and Team Rocket. Team Rocket hook lines with Misty by mistake, but escape unnoticed, meanwhile the kid catches hundreds of tough Seaking, releasing them for even bigger, stronger ones. Team Rocket send Meowth under water to try and catch Seaking, but they end up hitting Misties boat again. The contest ends, and the kid wins with a huge Seaking.
Suddenly, Misty runs up and enters a Seaking caught last-minute. A draw! To end the confrontation, the two battle, but Team Rocket burst in and steal the grand prize chocolate! Poliwrath beats Team Rocket and seeing how strong it is, Poliwhirl gets cold feet. It battles but fails, and sits to one side, embarassed. Misty talks to it, saying some of the best pokémon are unevolved, and Poliwhirl makes a comeback, obiterating Poliwrath.
The episode ends with Misty sharing the chocolate with everyone she remembers, except Ash!