Ash and his friends are increasingly hungry, and Brock informs them that his map shows that there is a town up ahead. They spot a boy in among the grass and decide to ask him for direction, but they startle him in the process. He's holding a Natu in his arms as well. Ash checks his Pokédex for data on Natu, but the boy seems to call the Natu "Naughty". Ash wonders why he calls Natu that, but Misty says it's a nickname. The boy runs off afterwards, without saying anything.
The gang comes across a small town with a festival going on, which they learn is the Pokémon Street Performer festival. The group watches several of the performances, but a fortune-telling act with Natu captures their attention. A man is there holding up a Natu explaining its fortune-telling abilities. A little girl tries it out, she gives Natu a token, then the Natu goes over to a pool of water and dips his wings in it; flies and hops across three rocks arranged in a triangle; then heads over to a bell hanging over a box, the Natu rings the bell, slips the token in the box, and uses Future Sight to draw out a fortune. It reads "A flower bloom in the light", and the girl shows it to her mom, who interprets it as a good omen for her daughter's upcoming dance recital. Misty is keen to have her fortune read. The man calls upon his son, McKenzie, to do the honor, and Ash’s group instantly recognizes him as the boy they met earlier. He seems nervous though, his father constantly reminding him of his lines. When it's time for the fortune-telling moves, he skips the part where Misty is supposed to give Naughty the token. He runs off again in embarrassment.
The gang follows McKenzie to a park, where they scare him once again. McKenzie explains that he can't seem to do the fortune-telling act because he's nervous. Misty suggests a mask might help. So McKenzie practices the act wearing a Wooper mask, things going smoothly until Naughty's Future Sight isn't powerful enough. Ash wants to battle it, obviously, to help Naughty become stronger, but McKenzie is frightened by the idea. However, McKenzie's father comes by and reassures his son that the mask is a great idea, which leads McKenzie to perform a live show.
Meanwhile, James encounters the Magikarp salesman. James almost falls for the trick again, but he recognizes him. The salesman runs off, James trying to pursuit until Jessie stops him. Jessie and Meowth inform James that they are going to kidnap the performers’ Pokémon and make money off them. During McKenzie's performance, Team Rocket arrives in their balloon and they drop a bomb to create a distraction. Jessie and James perform their motto while doing a trapeze act and kidnapping the performers' Pokémon, including Naughty. James sends out Weezing to use Smokescreen on the crowd below. Misty orders her Poliwhirl out, and it douses the smog with a Bubble attack, but Team Rocket has already escaped.
While James and Meowth discuss their latest catches, Jessie has already had all the Pokémon stamp their prints of business contracts in preparation for the future show business careers. Machoke breaks free of its restraining ropes and runs off. Team Rocket are not too fussed by the loss of one Pokémon. They decide to quickly pack up and fly off again. Machoke rushes to its Trainer’s side, and the search party including Ash's group notices Team Rocket escaping again. Ash has Bayleef cut the net with her Razor Leaf, freeing all the Pokémon, except for Naughty who remains in a separate cage. McKenzie gets worried because Team Rocket is still getting away. Ash tells Bayleef to use another volley of Razor Leaf and she does so, hitting the balloon. Team Rocket crash lands in a school and the gang reaches them along with McKenzie. The school kids and a teacher comes out, but all they can do is watch. James sends out Victreebel and Jessie calls out Arbok. Ash uses Bayleef against Victreebel and knocks it out with one Razor Leaf. McKenzie has Naughty use Confuse Ray on Arbok, and Arbok starts to head to Jessie and James. Bayleef just kicks the unconscious Victreebel to get them tangled up, Pikachu sends Team Rocket offs with a Thunderbolt.
Brock apologizes to the teacher for the interruption and explains that Team Rocket gatecrashed the Street Performer festival. Upon hearing this, the teacher admits that she wanted to take her students to see all the acts, but the festival was too far away. She asks if the performers would kindly put on a show for the children, and McKenzie's father pushes his son into taking to the stage. McKenzie puts on his Wooper mask and performs his fortune-telling act with Naughty. The performance goes smoothly, and this time Naughty is able to draw out a fortune with its Future Sight. The mystical performance receives resounding applause from the children, and surprisingly McKenzie’s confidence has also grown, as he decides to remove his mask. McKenzie’s father is impressed by his son's growth, and later the group sets off for their next adventure.