He tried to convince his son Kyle Hamm to run the dojo since he claimed that he was too old to do it, though Kyle refused to do so. So they challenged each other to a match. If Kyle won, he would be free to do whatever he wants, including his wish to run his own noodle shop. Since Master Hamm injured his back, Ash took his place, while May took over for Kyle. When they battled, Team Rocket interrupted the match and captured Hitmonlee and Hitmonchan. So Terri, the only student of the dojo, used Hitmontop to battle them. Ash finished them off with Pikachu's Thunderbolt.
Afterwards, Master Hamm finally conceded after realizing that Kyle's noodle restaurant dream was inspired by his own cooking. Master Hamm also revealed that he wanted to travel around making noodles, so he handed the Fighting Dojo to Terri, fulfilling her dreams.
Hitmonlee was used to battle Kyle's Hitmonchan, but because Master Hamm's hurt his back, the match was suspended.
Later, Hitmonlee was used by Ash, who took Master Hamm's place, to battle May and Hitmonchan. However, the match was interrupted by the arrival of Team Rocket, who went on to net Hitmonlee and Hitmonchan. The two Fighting Pokémon were freed thanks to Terri and her Hitmontop.