Ash and the others arrive in a town where all of the children have been disappearing. The head to the pokemon center where all of a sudden their pokemon start acting sick. They team up with Officer Jenny and track the source of the strange energy to a rooftop mansion, where people are using a Drowzee as a sleep aid. When Misty tries it, she begins acting like a Seel and runs off into the nearby rooftop park. They then follow her to a giant pond where all the missing children are. They then decide to use Hypno to reduce the children's condition, but Team Rocket decide to get the psychic pokemon for themselves.

On the way to the next town, Ash sees a Hitmonchan nearby. Ash starts battling it with Pikachu, but then the trainer, Anthony, comes and Hitmonchan easily beats Pikachu. The two of them leave and head to a gym to train. Anthony's daughter shows up and begs for them to enter the P-1 Grand Prix so that they can beat her father. She tells them that he is more concerned with training then his family and his daughter really misses him. Ash and Brock agree to enter with Primeape and Geodude. Meanwhile, Team Rocket decide to enter the tournament for the prize, and steal a trainer's Hitmonlee to enter.