Ash and friends welcome an old friend—Misty! She's received an invitation to a Togepi Festival, and is soon greeted by Team Rocket disguised as the operating committee for the festival. They escort Misty and Togepi inside a large building, which turns out to be a concealed zeppelin. Ash and friends climb aboard before takeoff, and the aircraft makes its way to the Mirage Kingdom.
Misty leaves the zeppelin and is met by Colonel Hansen, who demands that she turn over Togepi. Ash and Brock step forward to protect her, sending out Mudkip and Pikachu. Misty, May, and Max flee while Pikachu and Mudkip battle Colonel Hansen's two Ninjask.
Colonel Hansen's Shedinja catches up with Misty, who sends out her Corsola. During the battle, Togepi is blasted away and found unconscious in a stream by the princess of the Mirage Kingdom. A servant tells the king that the princess has finally found a Togepi, and they all gather in the princess' quarters to look at it.
Misty arrives and demands the return of her Togepi. The princess and the servant explain that Togepi are worshipped in the Mirage Kingdom, and in order to become ruler, the princess must have one in her possession for the coronation ceremony. Colonel Hansen wants the throne for himself, which is why he tried to steal Misty's Togepi. The princess decides to send Misty and friends home with Togepi.
As the gang are about to board the zeppelin, a mirror image of the temple appears in the sky. Togepi begins to glow and float toward it. Colonel Hansen arrives with Team Rocket, and his Shedinja attacks the group using Solar Beam, which Pikachu attempts to block with Thundershock.
Ash and his Hoenn traveling companions wait by a river for an old friend to meet them. Misty rushes to greet Ash and Brock, adding that her Cerulean Gym Leader duties are going well. She proceeds to tell May and Max that she already knows their names. Misty shows off her invitation to a convention for Togepi Trainers and approaches the hotel behind them. Then, two mysterious people dressed in Togepi patterned clothes approach Misty and promptly carry her into the hotel before closing the doors on the others. They place Misty and Togepi into the so-called VIP room, and on Jessie's signal, Meowth pulls a latch. The hotel building falls away revealing a blimp. Ash and his friends realize something is amiss and grab onto a rope from the floating blimp before pulling themselves aboard. The blimp flies over a desert and through a sandstorm before reaching its destination, the Mirage Kingdom.
After Meowth lands the blimp, and Jessie and James don their disguise again. As Misty leaves the blimp, Ash and the others emerge. When asked for their identity, Team Rocket gladly recites their motto. Misty becomes furious at them, thinking that they were trying to steal Pikachu. However, Team Rocket tells them that they were actually after Togepi. As Meowth leaps to snatch Togepi, Colonel Hansen steps in. He is disgruntled with the Rocket trio for bringing in the Trainers and throws Meowth directly at James's head. Colonel Hansen introduces himself as the Mirage Kingdom leader and demands Togepi. Misty absolutely refuses, so with a snap of his fingers Colonel Hansen orders Shedinja to demonstrate its Solar Beam. A pair of Ninjask appear, instantly triggering Misty’s fear of Bug Pokémon. Ash and Brock face Hansen with Pikachu and Mudkip, while Misty, Max, and May run. When Hansen notices that the Togepi is getting away, he commands Shedinja to go after them. Misty and the siblings keep running until they reach a hedge maze. Shedinja appears, freaking Misty out, but she is determined to protect Togepi. She sends out Corsola and orders it to use Spike Cannon. Unfortunately, the attack did not harm the Bug Pokémon a bit. Shedinja retaliates with another Solar Beam, hitting Misty so hard that she loses Togepi.
Togepi lands in a garden fountain, where it soon discovered by Princess Sara as she tends to her roses. Sara takes it to her assistant, Miranda who whisks Togepi to the palace for treatment. Miranda rushes into the throne room and informs the King that a Togepi found its way to the Princess. The Queen is with her daughter and announces that the succession ceremony can take place tomorrow. The King and Miranda soon enter the room to marvel at the miraculous arrival of a Togepi, though Misty barges into the palace to collect her Togepi. Miranda stops Misty from reaching the Princess and Colonel Hansen rushes in to inform his majesty that Misty and the others are intruders. May and Misty challenge Hansen's account, and the King calls for Hansen to leave the room immediately. Ash and Brock rush in just as Colonel Hansen leaves. Afterwards the King escorts the group to his throne room to sincerely apologize for the misunderstanding. Misty is happily reunited with Togepi, with Princess Sara admitting she knew it was too good to be true. The King calls for them to leave the Kingdom immediately, though Misty demands to know what is happening.
Outside the coronation temple, Miranda explains that Togepi have been a symbol for Mirage Kingdom for centuries, adding that the Pokemon is needed to determine the next ruler. Sara admits that her quest to find a Togepi has not been successful, and suggests Colonel Hansen was hoping to take the throne himself and Miranda second this. Brock gladly offers his assistance to the Princess, though Misty pulls him back by the ear before tossing him aside. Max and May are mildly impressed by Misty's handling style, but equally terrified. Misty offers her assistance to the Princess, but Sara refuses to place anyone in danger. However, as Misty and the others are about to leave, they notice a reflection of the temple appear in the sky. Togepi seems to be reaching for it and then it begins to float away. Suddenly Hansen's Shedinja appears, though Misty manages to rescue Togepi before the Bug-type launches its Solar Beam. Hansen and Team Rocket appear, demanding Togepi once again. At Misty’s refusal, Shedinja charges another Solar Beam at them and Pikachu counters it with his Thunderbolt.