Ash and his friends are still on the road back to New Bark Town where they can deliver the Pokémon Egg requested by Professor Elm and so Ash can register for the Johto League Silver Conference. As Ash, Misty, and Brock eat their lunch, the trio try and guess what kind of Pokémon with hatch from the Egg. Just as Brock suggests it's going to be a legendary Pokémon, the Egg begins to glow as if it is about to hatch, but it's only a false alarm. As Ash tries to persuade the Egg to hatch, Team Rocket spy on them from the bushes and then begin to scheme how to get it.
At that moment, the Egg begins to glow again from under Ash's shirt. When Ash pulls his shirt up, it reveals a Larvitar. Larvitar isn't moving, and Brock checks its temperature and finds that its body temperature is way too low. The trio decide it's best if they got Larvitar to a Pokémon Center, and promptly go to a nearby one.
Nurse Joy can't find anything wrong with Larvitar and calls Professor Elm who is currently meeting up with Professor Professor Oak and Delia so they can see Ash off to the Silver Conference.
Trouble is brewing back at the Pokémon Center: not only can Nurse Joy not get a hold of Professor Elm, but a storm is brewing and Larvitar isn't getting any better. As Nurse Joy finds that Larvitar is getting worse, the power goes out. Nurse Joy goes to check on the generator but falls down one of Team Rocket pitfalls. Jessie explains to her that now they're going to kidnap Larvitar. Inside, the trio wonder where Nurse Joy is. Jessie, dressed up as Nurse Joy, and James, disguised as a surgeon, tell them that they need to take Larvitar to the hospital. Ash almost does it, but Brock stops him and tells him that it's clearly not Nurse Joy. Jessie reveals herself and James tries to take Larvitar by force, but Pikachu uses Thunderbolt, sending Team Rocket running off.
Misty and Brock go rescue Nurse Joy from the pitfall, but Nurse Joy explains that the generator's blown beyond repair. Inside, Ash uses Cyndaquil to heat Larvitar with the heat on its back.
Back in New Bark Town, Professor Elm finally gets Nurse Joy's email about Larvitar, and immediately hits the road to the Pokémon Center with Professor Oak and Delia. The professors tell them that they'll take care of Larvitar while the others eat breakfast. The professors manage to get Larvitar's body temperature up and make it conscious, but Larvitar still doesn't respond to external stimuli and it hasn't eaten, making it obvious a problem still exists. Just as everyone leaves to eat breakfast, Larvitar opens its eyes slightly.
At the table, Ash tells the others of a dream he had the night before where he saw into the eyes of Larvitar as an Egg. The Egg was tossed around in traffic and rolled under the feet of people on a sidewalk. Professor Elm says that must be the cause for its unresponsiveness. Ash asks Professor Elm if he can take Larvitar outside for a while, and Elm says it's alright to.
Outside, Ash shows Larvitar how great the world is, showing it a field, the ocean, and the sky, but as Larvitar takes it in, Team Rocket shows up and invites Larvitar to come lay on a pile of hay with them. After Ash tells them that Larvitar won't, Team Rocket dives into the hay and comes out with a vehicle with a pair of arms and a giant net on it. The arm grabs Ash, who lets go of Larvitar. Before Team Rocket can steal Larvitar, Ash tells Pikachu to get Larvitar away, but Larvitar won't move.
Pikachu tries to shock the vehicle, but it's shock proof, and Team Rocket grabs Pikachu with the other hand. With the net, they go for Larvitar, but a herd of Jumpluff get in the way so they can't catch it. As Larvitar watches the Jumpluff bounce on the ground, it remembers bouncing through the streets as an Egg and uses Screech. With Team Rocket temporarily distracted, Ash tells Larvitar to run, but instead, it uses Hidden Power to levitate the vehicle and free Pikachu and Ash. Larvitar sends Team Rocket blasting off, and the others watch in astonishment.
Ash congratulates Larvitar and tells him there's nothing to be afraid of when he's with his friends. With Larvitar opening up to the world, the group drives back to New Bark Town and Ash registers for the Silver Conference at a Pokémon Center.
Now on the road to Mt. Silver, Elm has entrusted Ash with Larvitar so he can deliver it to the Pokémon Preserve Center there, where the Egg was originally found. The episode ends with the three sent off to Mt. Silver.