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The episode begins with an excited Clemont running in the forest, with Ash, Serena and Bonnie following him. The group reaches a signpost leading to something, and Clemont explains that it leads to the Gadget Festival, the largest exhibition of mechanical devices in the Kalos region. Ash, Serena, and Bonnie seem displeased, and Serena asks him if the festival is that great of an event, to which Clemont replies that great is just an understatement for the Festival. He adds that all the great inventors from the entirety of Kalos would participate and compete by showing off their mechanical wares.
The group finally reaches the Gadget Festival and is amazed at the building and various devices and gadgets at the festival. Ash points toward something, which Clemont states to be a Welcome gadget. Clemont initializes the gadget, and the group is amazed at the functioning of the gadget. Revealed to be a Berry opener, Serena remarks that building the gadget was a waste of time and breaks open a Berry with her bare hands. Clemont is disappointed and preaches about the playfulness that comes with building gadgets, adding that it creates a variety of inventions which ultimately leads to new technologies, adding that appreciating fun is the only way to appreciate what the Gadget Festival has to offer. Concurrently, James who also happens to be in the Gadget Festival with Jessie and Meowth, has completed building his Poké Ball Stealer Mark I, and just needs a finder tool. Jessie questions if the place they are in is their gadget room, which James agrees to. Jessie remarks that she believes a gadget is something people use to keep track of money, but Meowth corrects her, stating that what is saying is called budget. James decides to check out other gadget rooms to see his competition. Meanwhile, Ash and his friends proceed to sit on the chair that will take inside the building. Bonnie seems excited and sits on the chair and Chespin comes out to ride too; seeing this, Serena calls out her Pancham to ride with Chespin. All of this is witnessed by Team Rocket, who decides to catch Pikachu before stealing Poké Balls with their device.
The group stumbles upon their first gadget room but finds the door locked. Serena advises Ash to push the door instead of pulling, but it fails. Clemont shows them how to open the door, exclaiming that he loves to deal with gimmicks like these. The group then learns that room is a plain room, but Clemont disagrees and reveals the wall to be a hidden door. Bonnie remarks that they have separated from Pikachu, Chespin, and Pancham in the process, so Clemont informs the Pokémon to meet up later. The group then passes through another room containing moving cylinders with ease, and Serena and Bonnie praise Clemont's skills. Concurrently, the Pokémon have to cross a gadget with a lot of traps and an icy floor. Chespin pushes Pancham and laughs as the Playful Pokémon reaches the end, but not before being hit by the device's traps. Pikachu and Chespin reach the end relatively safe, and the latter enters into a feud with Pancham, which is interrupted by the Mouse Pokémon. Ash and his friends reach another door, which this time, is a door designed for sliding on it.
Venturing through the building, Team Rocket stumbles upon the locked door from before and Jessie tries pushing and pulling it, but to avail and declares it has broken. James, however, shows his team members how, and they enter the room. Jessie tries to make her way through the wall, calling it a contraption, but James reveals the trick to the wall as well. On the other hand, The Pokémon now reach a place full of gears, and Pancham challenges Chespin to pass over them. Chespin cleverly passes over the gears but is hit by a hammer, the catch of the game. The Spiny Nut Pokémon is angered and shouts at the hammer, only to be stroked by it again, which causes to Pancham burst out laughing. Concurrently, Team Rocket has reached the icy floor room, but sans James, everyone is hit by the traps. Ash and his friends encounter another gadget room, and Ash is the first one to sit on the chair. Bonnie claims that the gadget is like an amusement park ride, and when Ash reaches the end, he narrowly avoids being knocked over by an arm by jumping on the platform next to him. Bonnie is up next and narrowly manages to avoid the arm too, claiming that the device wastes no time in doing its trick. Meanwhile, Team Rocket stumbles upon the moving cylinders next. James and Meowth cross the gadget pretty easily, and while Jessie does fairly well in the game, she messes up at the end and is highly displeased.
The group enters a room, and a doll dressed in a kimono carrying tea comes towards them. She offers tea to Ash but instead spills the hot tea all over his face. Ash is not happy with the doll, but Clemont remarks that this must be part of the humor and playfulness that is necessary for a gadget, and Serena is impressed by the doll's manners. Pikachu, Chespin and Pancham, next, have reached a room full of a series of moving blocks and Pikachu is the first one to cross. Chespin and Pancham jump on a block and the Playful Pokémon sees this as the perfect opportunity to push the Spiny Nut Pokémon off their block. Chespin, however, jumps back on the block after some hits and starts fighting with Pancham. The two cross the blocks while fighting, and then inadvertently jump onto Pikachu, knocking everyone out. Team Rocket, meanwhile, stumbles upon the amusement park ride gadget, and a tired Jessie sits on the chair, initiating it. Unlike others before her, she is not quick enough and is struck by the gadget, knocking her back to her teammates. The trio enters the room with the winding doll next, who dumps tea onto Meowth. Venturing through the building, Jessie is angry and remarks that they would never be able to catch Pikachu while they are trapped inside, and James remarks that it is time to employ their device.
A boy finding its way through the building stumbles into Team Rocket's room. Upon inquiry, James asks the boy to put three of his Poké Balls onto the device to initiate it. When he does so, he witnesses the gadget's functioning and is amazed by it. When the boy demands his Poké Balls back, however, he is thrown out by Team Rocket through a floor trap. Another girl stumbles upon the room and has her Poké Balls stolen. Meanwhile, Ash and his friends have reunited with their Pokémon; Pancham and Chespin start fighting again and are stopped by Pikachu. A guard, looking for the Poké Ball thieves, informs the group about the theft taking place in the festival, and the group decides to check into the matter. Ash and his friends reach Team Rocket's room, who have stolen yet another Trainer's Poké Balls. The thieves manage to flee the room through a secret door and are trailed by the group. They cross through a piano designed gadget room first and must pass over rollers. Meowth praises Jessie for her skills in maneuvering through the rollers, and Jessie claims her genius does not necessarily come out until she is under pressure; ironically, she fails this time as well.
The two groups come out of the building, and Team Rocket reaches another gadget of theirs. Meowth initiates the device, which seems to work quite well. However, with the help of the gadget, Meowth falls just short of reaching Pikachu to attack it with Fury Swipes. A disappointed Jessie claims it would have been better for Meowth to use Fury Swipes simply on Pikachu, but James disagrees and remarks that gadgets should have a sense of playfulness, which is vital for the brilliance of their machine. Clemont seems to agree with them and is in return mocked by Bonnie. With no choice, Jessie and James send out Gourgeist and Inkay respectively, who use Seed Bomb and Psybeam to attack the group. Pancham uses Dark Pulse but Gourgeist dodges it, and the move hits Team Rocket's machine instead. Clemont commands Chespin to use Pin Missile, damaging the device even further. Finally, a Thunderbolt causes the device to explode and Team Rocket to blast off again. With the Poké Balls returned to their Trainers. Clemont suggests to explore and enjoy the remaining lot of gadget exhibition rooms. Clemont ends the episode by remarking how gadgets are the height of impressibility and symbolize the triumph of human intelligence and skill, and that the Gadget Festival will continue to celebrate the world's hopes and dreams for the future.