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Pikachu and co. arrives on the beach. As the others start playing on the beach, Pikachu says that they can play anytime on the beach. For now, they should go to the Island. Suddenly, a Wynaut, looking weak and battered, wobbles from nowhere and faints in front of the gang.
When Wynaut wakes up, Pikachu asked what happened to him. Then the scene shifts to the island where a bunch of Wynaut, a couple of Pichu, and a Buizel were playing peacefully. An explosion suddenly disturbs them and Meowth, Cacnea, Mime Jr., Wobbuffet, Chatot, Hariyama, and an Exploud appeared from the smoke. Meowth commands Exploud and Hariyama to kick all of them out of the island and announces that this island now belongs to him. Wynaut's story ends and Pikachu and co. decides to help the Wynaut, Pichu, and Buizel reclaim the island. At first, the Pokémon were discouraged but Pikachu and co. successfully boosts their confidence. Pikachu decide to train the Pokémon first before battling Meowth and his goons.
The Pokémon tackled Corphish as their first training but none of them were successful. Eevee remarks that Corphish is overdoing it so he got an idea. When one of the Wynaut tackles him, he pretends to be beaten. When it was the smallest Wynaut's turn, he accidentally trips. Corphish chose Buizel to go next but he's too scared of doing it. Now, the scene shifts to Pikachu teaching the two Pichu Thunderbolt, then onto Squirtle and Marshtomp teaching the Wynaut how to dodge a Water Gun. Three of them made it, but the smallest one got hit. Lastly, Combusken teaches the Pokémon about countering attacks. Three Wynaut uses Mirror Coat to counter Corphish's BubbleBeam and they succeed. Then, the smallest one tries, but his Mirror Coat wears off and he gets blasted by the BubbleBeam. He was send high above the ground, then crashes back. The training is now complete and the Pokémon are now ready for battle.
The gang uses a cable car, in which a boat is used as a cabin, to reach the island. Meanwhile, Meowth and Wobbuffet gazes at the view and Meowth daydreams about what he will do to the island. Suddenly, Chatot interrupts them and leads them near to the cable car. Meowth sees Pikachu and co. and decides to confront them. Just as Cacnea is about to attack, Corphish cuts the rope holding Meowth's boat making them fall into the water.
When Pikachu and co. reaches the island, Hariyama and Exploud appears from nowhere and Meowth and his goons comes from behind. The gang then splits up. Several scenes show Pikachu and co. winning. When they were gathered in a single spot, Meowth commanded Hariyama and Exploud to use their best moves (Hyper Beam and SolarBeam). It successfully deals great damage to Pikachu and co.. Exploud then fires another SolarBeam at a Wynaut but was deflected back to Exploud by Wynaut's Mirror Coat. Then, Hariyama fires a Hyper Beam but the Wynaut used Safeguard to protect themselves. Meowth then commands both Hariyama and Exploud to attack them but the Wynaut counters the attacks and Hariyama and Exploud lands on one end of a seesaw. As a last ditch attempt, Meowth and co. charges at the Pikachu's gang but the Pokémon sends Meowth and Co. to the seesaw. Donphan sends them flying by landing on the other end of the seesaw and the Pokémon successfully reclaims the island.
Pikachu and the others are seen happily playing in the playground. Pikachu then discovers some watermelons and shares them with the others. The Pokémon play and ate watermelons all day. The last scene shows Pikachu and vo. eating watermelons and watching the sunset.