Zoey welcomes our heroes to her hometown, Snowpoint City, the site of Ash’s next Gym battle. The welcoming committee doubles when Candice joins the group—she’s Zoey’s friend and the Gym Leader that Ash hopes to battle! Candice also teaches at the Pokémon Trainer School where she and Zoey were once students; before she battles Ash, she wants to show him off to her special class for older Trainers. This special class includes Jeremiah, a Pokétch company employee who wants to travel with his Skuntank, and the members of Team Rocket in disguise.
Once Ash and Dawn are introduced, Candice starts the class with a quick-fire quiz challenge. Both Ash and James think they’ve got this in the bag, but Jeremiah beats them both! Ash may have the badges, but Jeremiah isn’t impressed by his quiz challenge performance. While Ash grumbles, Zoey tells Dawn all about how she met her Glameow on a cold night before she was old enough to be a Pokémon Trainer. Zoey insisted on raising Glameow no matter what, but the school’s principal, Mr. Honcho, insisted that Candice help her out. The two agreed to each focus on one area: Zoey concentrated on Contests, while Candice pursued Gym battles.
But all this time, Team Rocket has been focused on stealing the school’s stored Pokémon. They’ve overpowered Mr. Honcho, grabbed the school’s Poké Balls, and are about to make a clean getaway! Jeremiah and Skuntank try to stop them, but Team Rocket has Jeremiah’s Skuntank on the ropes. Candice and our heroes arrive in the nick of time; Ash and Buizel help rescue Skuntank, while Candice and her Abomasnow tackle Team Rocket. Our heroes foil Team Rocket once again, showing Jeremiah that Ash is a great Trainer after all and quiz results aren’t everything! Ash will take on Candice in a Gym challenge tomorrow—is he great enough to earn his next badge?
Upon reaching Snowpoint City, Ash and his friends meet up with Zoey, who guides them through her hometown. Unexpectedly an Abomasnow ambushes them, though Zoey has Glameow combat it. Brock assumes it must be wild, though its Trainer, Gym Leader of the Snowpoint Gym, Candice corrects them. She leaps from a tree and is fascinated by Dawn's stylish scarf, before Zoey pulls her friend away. Candice formally introduces herself, to which Ash challenges her to a Gym battle. She is thrilled, admitting she doesn't usually get any challengers because of her Gym's isolated location.
The group accepts her offer to show them around the city; the first place they are lead to is a Trainers' School where Candice works as a teacher. Candice is thrilled to hear Ash already has six Badges and asks him to talk to her students before their Gym match, which he agrees to. Candice takes them to her senior class, where adult Trainers already with a Pokémon can learn the basics. Among the students are Team Rocket in disguise. Candice welcomes Ash to the front to discuss the secret of his success as a Trainer. He answers that "The best defense is offense", but he is suddenly faced with a riddle-style quiz. He struggles while a knowledgeable businessman named Jeremiah answers all questions with amazing speed. After the test, he says that Ash is not clever enough, but Brock comforts him, saying that he is great at Gym battles.
Later, Ash and his friends meets Zoey and Candice at a small shed where the two girls used to play together. Zoey then reveals that she met her Glameow when she was too little to raise a Pokémon. After her parents refused to allow her to keep Glameow, Zoey attempted to raise it at school in secret. Head teacher, Mr. Honcho, quickly found out, though Candice stepped in and agreed to help raise Glameow with Zoey until she was of age to train it. Candice then turns her attention to Dawn's Ribbons. Dawn reveals she has four, and was close to getting her fifth recently. Candice erupts with anger when Dawn mentions that she was "relieved" to have lost, and Brock warns Ash that Candice looks to be an intense opponent.
Meanwhile, Team Rocket have Mr. Honcho take them on a guided tour of the school, and the trio's eyes light up when they enter the Poké Ball storage room. Jessie surprises Mr. Honcho with a Haze from her Seviper. Mr. Honcho manages to trigger the fire alarm, so Candice and the others rush over to check out the situation. Outside, Jeremiah attempts to catch up to the trio making off with all the Pokémon. He attempts to battle them using his Skuntank, though James's Carnivine immobilizes it with Vine Whip. At the moment Jessie's Seviper is about to attack, Pikachu comes to the rescue and knocks it out. After Team Rocket reveal themselves, Candice and Ash team-up to defeat them. Team Rocket tries to escape with Haze, but Candice's Abomasnow easily removes the smoke with Blizzard and freezes Team Rocket in the process. With the help of Ash's Buizel's improved Ice-Aqua Jet, and Zoey's Glameow's Shadow Claw, Team Rocket is sent blasting off again. Though afterward, the Poké Balls start to fall from Team Rocket, but Piplup collects them safely with Whirlpool. Seeing how Ash beat Team Rocket, Jeremiah apologizes for being rude earlier. With all the Poké Balls safe and sound, Ash now concentrates on his upcoming Gym battle against Candice.