Ash and friends find themselves inside the Ilex Forest. The encounter a young trainer named Sylvester who is having trouble with his Farfecth'd and can't get it to help him make Charcoal. Team Rocket appear and steal the pokemon, and now Ash, Misty, and Brock must help Sylvester get it back, and prove to Farfetch'd that he really cares for it.

Ash and friends arrive in a new town where an event called the Fire and Rescue Grand Prix in going to be held. It is a firefighter competition, mainly for Water Pokemon. They are quickly reunited with two sets of old friends. First they meet Captain Aidan and Team Wartortle from the Orange Islands, and then they meet the Squirtle Squad. Both team are going to be in the competition. However, the Squirtle Squad have become essentially lost without their leader. In order to settle its rivalry with Team Wartortle, Ash's Squirtle rejoins the Squirtle Squad for the competition, and the end result will change everyone.