Ash and friends have delivered the GS Ball safely to Kurt and are heading to the Azalea Town Gym for the next badge. Misty thinks Ash will have a tough time without Charizard but Ash is confident that Cyndaquil has the firepower he needs. They arrive at the gym are are surprised to find out that it is a forest inside of a dome. The Gym Leader, Bugsy, appears and accepts Ash's battle. Bugsy specializes in Bug-Types, and quickly proves that Ash will need to think quickly if he is to earn his Second Badge.

Ash and friends arrive in a town where the Pokemon Swap Meet is being held. The event has many festivities, but the main one is where people trade their pokemon to other trainers. They meet a trainer named Benny who is trying to find someone to trade his Wobbuffet to. Ash, Misty, and Brock decide to help him find someone to trade to. Meanwhile, Team Rocket is using the event to trick trainers into giving them their pokemon. However, a run-in with the Magikarp Salesman leads to events that may change the outcome of Team Rocket's plans.