The episode begins with Ash and his friends walking along a dirt path. They come across a few Pokémon banners and immediately recognize that it's Kids Day. Suddenly, someone mistakes the trio for the Pokémon Trainers they've been looking for. Once she receives a phone call, she realizes that Ash and company are not the Pokémon Trainers she was searching for. However, after hearing how she wanted to do something special for the children she teaches at the pre-school, the trio decides to let the children play with their Pokémon.
Meanwhile, Team Rocket reminisces about Kids Day. James always had a great Kids Day, whereas Jessie did not.
The episode goes back to Ash and his friends inside the school. The children rush over to play with Pikachu, who has to be taken away by Ash before it electrocutes the children. Misty and Brock also let out their Pokémon, who all begin playing with the kids. However, there is one child who is off on his own. This child, Timmy has no interest in playing with any Pokémon besides Meowth. He further explains that this is due to a wild Meowth saving him from a Beedrill. However, the children are in total disbelief and mock him.
Suddenly, a bright van pulls up to the school where Jessie, disguised a magician, convinces the teacher to let her, James, and Meowth do a magic show for the children. She agrees and Team Rocket sets up. They show the children, the gang, and the teacher an empty box, and claim that they need a volunteer. Pikachu is swept up by James who places it into the box. Both Jessie and James chant before tapping the box with a wand. Meowth flies from the box and completes the trick, much to the kids' enjoyment.
The trio try to make their getaway, but are stopped by Ash who demands his Pikachu back. Team Rocket reveals themselves, but are attacked by the overly excited children. They begin to bounce around Weezing before the teacher yells at them to quiet down and leave Team Rocket alone. Getting back down to business, James tells Weezing to use SmokeScreen which is able to blind the gang.
Timmy, upon seeing Meowth's distress, rushes over to help, but knocks down the box Meowth was standing on. This also knocks Pikachu out of the box, unbeknownst to everyone else. Team Rocket picks up the box and rushes off to escape. Ash worriedly calls out to Pikachu, but Pikachu is safe and sound inside the school. However, the teacher says that Timmy has gone missing. Then Misty does a Meowth impression.
Meanwhile, Team Rocket rejoices over their capture and opens the box, hoping to pull out Pikachu. Instead, they pull Timmy from the box, who proceeds to cry. The tears stop when he sees Meowth. He runs over to Meowth, thanking him for saving his life from the wild Beedrill. Meowth is about to tell him he has the wrong Pokémon, but Jessie and James convince Meowth to go along with the kid to avoid crushing his feelings.
Putting on an act, Jessie and James behave like they want to do harm to Timmy. Meowth jumps in front of him and uses Fury Swipes to knock Jessie and James down. Meowth grabs Timmy's hand and makes a run for it. They come running back to the school, surprising everyone. The children see Meowth and apologize for not believing Timmy's story in the first place and Timmy accepts their apologies and allows them to play with Meowth, who relishes in the attention.
Meowth accidentally lets some human speech slip from his mouth, getting Misty to call him out. In desperation, he makes a run for it, much to the dismay of Timmy and his classmates. Timmy chases after Meowth, followed by everyone else. Meowth is able to make it back to Team Rocket, but he is followed by everyone. Team Rocket recites their motto once more and challenges Ash to a battle. Jessie sends out Arbok while James sends out his Weezing. Ash calls his Pidgeotto out and Brock helps by using Onix.
Weezing uses Smog, which is easily blown away by Pidgeotto's Gust, along with Weezing itself. Arbok, however, escapes by using Dig. Arbok pops up in front of the gang, but was tackled by Onix. This tackle causes part of the rock on the cliff Arbok slammed into to crumble and roll. Everyone is able to escape with the exception of Ash and Timmy. However, a wild Meowth comes out of nowhere, kicking the boulder in two and saving their lives. Timmy immediately recognizes this Meowth as the one that had saved him before.
Meanwhile, Team Rocket is running atop a second boulder, disappearing from sight while chasing their Meowth, unable to stop rolling.
Once back at the school, the teacher thanks Ash and his friends for all their help. Timmy proclaims he's going to become a Pokémon Trainer as well, hinting that the wild Meowth is now his. Finally, our heroes say goodbye to their new friends.