Ash and his friends are at a campsite, training for the Pokémon League, when they meet a Trainer named Katrina. Though Brock tries to make an advance, Ash quickly accepts an offer to battle against her Raichu with Pikachu. However, before the battle begins, Team Rocket suddenly appears with a net in an attempt to snag Pikachu. However, they end up catching Raichu in the net instead. After the realization that Pikachu had not been caught hit them, Raichu breaks free, and uses a Thunderbolt and Mega Kick to knock Team Rocket over. As they are preparing to send Team Rocket flying, a voice yells "Cut". It had turned out that during this entire exchange, they had unknowingly been filmed.
The producer introduces himself (in the style of Team Rocket's motto, much to their bewilderment) as Cleavon Schpielbunk, an acclaimed director. However, Ash and Misty had never heard of him, though Brock easily recognizes him as the producer behind his favorite movie, I Saw What You Ate Last Tuesday (which Katrina also admitted to "almost" have seen—implying that though his movies were critically acclaimed, they were hardly box-office successes). Schpielbunk is in the area to cast a Pokémon for his all-Pokémon production, Pokémon in Love, after his male lead, an Abra, had teleported off the set over its costar, a Wigglytuff with a prima-donna attitude. Everyone is interested in being part of the movie, and sends out their Pokémon to audition: Pikachu, Raichu, Arbok, Weezing, Meowth, Vulpix, and Psyduck are chosen by their Trainers to audition (Misty originally wanted Staryu to audition, but once again, Psyduck pops out instead. Misty also had to rein in Togepi from walking onto the stage as well.), and easily pass though after showing off their dancing skills (Pikachu and Raichu dancing together in a ballroom-style dance, Arbok spinning about, Weezing and Vulpix by bouncing and jumping, Psyduck by wagging its tail, and Meowth from a tap-style routine).
In the next round, Schpielbunk wants the Pokémon to sing. However, as if on cue, Jigglypuff appears, and puts everyone to sleep. After waking up, Schpielbunk wants everyone to sing with Wigglytuff. When Meowth mentions to her that he "works alone", he and the other Team Rocket Pokémon are DoubleSlapped. As a result, an enraged Team Rocket fumes off in order to comfort their Pokémon. After the realization that show business is tough, if only because of Wigglytuff being irritable, Pikachu, Raichu, and Vulpix dejectedly leave the stage, leaving only Psyduck (Misty claiming it was too stupid to get off the stage), who gets the part (prompting Brock to claim that Psyduck was only acting stupid).
Later, Brock asks Schpielbunk for a plot summary of Pokémon in Love, to which Schpielbunk describes the movie as simply "brilliant". In his movie, Psyduck and Wigglytuff are lovers who are caught in a "family feud" between Psyduck's fellow Water types and Wigglytuff's Normal types. However, just as the movie reaches a climactic battle, ruffians (Fighting types) appear, and a stray arrow manages to hit Psyduck, fatally wounding him. The family feud ends over Wigglytuff's remorse over Psyduck's death. While Brock is amazed at Schpielbunk's brilliance, Misty claims that it isn't original at all (the premise being similar to that of Romeo and Juliet). However, Ash and company (including Katrina) agree to assist in any way that they can for the production. Meanwhile, Team Rocket, nearby, is plotting their revenge for their Pokémon's behalf.
Schpielbunk begins filming by shooting the climactic scene - so that he knows how the movie should end, he claims. The filming begins (with Staryu providing rain effects, Pidgeotto providing wind effects, and Pikachu and Raichu embedded among the large mass of Normal and Water types for thunder effects) as Pikachu and Raichu have their respective groups attack each other. However, as Wigglytuff and Psyduck prepare to enter the fray, Pikachu (in the middle of the fray) is thrown into Wigglytuff, to which Wigglytuff responds adversely. Just then, smoke fills the area, and Team Rocket appear to have their revenge. However, this only causes all the Pokémon to turn their attention on Team Rocket. Schpielbunk then orders his crew to join the brawl that has ensued, while Ash and company take the opportunity to pose in front of the now-unattended camera.
Katrina's scream, however, brings the group back to the brawl: Team Rocket had gotten the upper hand, and had, with the help of a large magnet on a crane, kidnapped all of the Pokémon, except Psyduck (prompting Misty to say that it doesn't know the proper way to get kidnapped). As both Misty and Wigglytuff prompt Psyduck to take action, Psyduck manages to snap, and, in his brief moment of psychic powers, uses Confusion to free everyone and send Team Rocket flying. As Psyduck passes out from exhaustion, Wigglytuff comes over to him, concerned. Ash leads all the Pokémon to cheer for Psyduck as the scene ends.
That night, Ash is worried as another day is wasted from not training. Brock and Misty console him, though, as it is not every day he can take part in a movie, and he also met a rival Trainer (Katrina) in the process. Schpielbunk thinks that Ash's adventures would be great movie material, and that any male lead would have plenty of female fans (to which Brock immediately tries to sign up for the role). The episode closes out with Wigglytuff and Psyduck alone by the lake, while Team Rocket is stuck in another precarious position.