After accidentally seeing Gladion and coming face-to-face with Silvally, Lillie is once again unable to touch Pokémon—but she’s determined to change that! With Nebby’s help, she embarks on a journey to recall the memories behind her fear. But Faba wants none of it, having been responsible for Silvally’s creation in the first place. Vowing to make sure Lillie never remembers her past, Faba captures her, and she’s again filled with fear. But Silvally rescues Lillie, and when she remembers that it was the one who saved her in the past, her fear of touching Pokémon finally vanishes!
Lillie writes in her diary about the events of the previous episode and how she is now afraid to touch Snowy. At night on the beach, Gladion confronts Ash over what happened. Ash tries to apologizes but Gladion won't listen. Returning to his motel room, he is met by Faba who has heard what happened to Lillie. He has come to retrieve Type: Null, claiming to be Lusamine's wishes. Gladion refuses, leading to a battle between their Pokémon but Gladion is soon defeated. Hypno prevents Gladion from sending Type: Null out with Hypnosis as Faba takes the Premier Ball from Gladion. Ash and his classmates are supportive to Lillie over what happened as Professor Kukui and Professor Burnet join them.
Another attempt at making contact with Snowy causes Lillie to freeze. When school ends, Ash joins Lillie and Snowy as they walk home. As they walk, Lillie guesses that Ash has met with Gladion which Ash confirms. Lillie reveals what happened when she encountered Gladion and Type: Null. Ash tries to cheer Lillie up which helps and Lillie decides to remember everything that happened. Nebby starts Teleporting them to various locations from Lillie's past, which brings back memories of her and her family. Soon, Nebby teleports them to the research area underneath Aether Paradise. In his lab, Faba places the Poké Ball containing Type: Null in a drawer and is alerted to the presence of Ash and Lillie.
Walking around, Lillie recalls that she has been here and are spotted by Team Rocket. Gladion confronts Lusamine over what Faba said to him but she hasn't a clue what he is on about. She remembers that Faba reported Type: Null to be a failure and has Gladion tell her what he knows. Faba is instructing Team Rocket to bring Lillie to him so he can make her forget but Team Rocket refuse and walk off. Ash and Lillie soon find themselves confronted by Hypno and Alakazam who send Ash flying as Faba grabs Lillie and takes her away. Faba and Lusamine search from Type: Null's Poké Ball and find it as an alarm sounds. Faba has Hypno start to erase Lillie's memories only to be stopped by Pikachu.
Nebby protects them from Hypno's Hypnosis as the battle continues. Alakazam takes Lillie into the air as Gladion and Lusamine arrive. Gladion sends out Type: Null who breaks free of its mask, turning into Silvally. Silvally frees Lillie from Alakazam, which causes Lillie to recall more memories. She remembers that Silvally had previously saved her from Nihilego and Faba was there when it happened. With help from the Dark Memory, Silvally is able to defeat Faba as Lusamine apologizes to Lillie. Lillie thanks Silvally and finds herself now able to touch every Pokémon.