Preparing to depart for Valencia Island, Ash and co. are at a grocery store picking up supplies for their trip. Ash suggests walking, but Brock's guidebook says that it will only take a day traveling by blimp. While the blimp arrives, two men sponsor a contest where the winner gets a prize just by showing their store receipt to them. Ash shows his receipt, and wins a trip on the blimp. Unknown to the kids, Jessie and James have received an assignment from Giovanni to operate the blimp.
Ash and the others reach the blimp yard, where they see a broken down blimp. Two men approach them and ask if they are riding the blimp. They then tell them the blimp is haunted and full of ghosts. At this point, Jessie and James enter the blimp.
Once on board, Ash and the others notice how broken down the blimp truly is. At the same time, Meowth is fixing dinner, while Jessie and James act as waiters. During some turbulence, Ash complains about the ride. Jessie and James ask Meowth who's flying the blimp. They realize that nobody was flying the blimp. Realizing this, Jessie and James attempt to pilot the blimp, but instead fly it into a big storm.
Suddenly, Misty notices that Togepi is missing. They set out to find it, while Team Rocket starts looking for the twerps. When Ash and the others reach the inflated portion of the blimp, they encounter what they believe to be a ghost. As it turns out, the ghost is actually Jigglypuff.
Eventually, Ash and friends meet up with Team Rocket, and begin a Pokémon battle. At one point, Brock's Geodude throws James's Weezing through the blimp and it starts ripping apart. While this is happening, Misty finally spots Togepi on a high ledge. Ash uses Bulbasaur to grab Togepi from the ledge. While trying to rescue Togepi, Team Rocket attempts to steal Pikachu. Their plan is thwarted when the blimp hits a pocket of turbulence and fall out of the blimp. Using fabric from the blimp, Meowth makes a parachute. However, Jigglypuff lands on top of it and starts to sing. They fall asleep, and Meowth lets go of the fabric, causing the trio to fall into the ocean.
Now in control of the blimp, Ash and the others try to land it. Using their Pokémon, they are able to steer the blimp and crash land it on Valencia Island. Now safely on land, they continue to Professor Ivy's lab to obtain the GS Ball.