Ash and friends chance into a Tyrogue, nearly falling victim to a ploy it lays out in an attempt to make off with all of their Pokémon food. Just as they tie things up with the Tyrogue, they learn that it is in fact not wild, but owned by a devoted student of Chuck, the Cianwood Gym leader. This student, who prides himself for his martial arts ability, explains that he is now taking his Tyrogue to an exhaustive tournament in which Fighting type Pokémon vie for the title. Meanwhile, though, he is having a terrible time disciplining his mischievous Pokémon. As if to accent this complaint, an angry local arrives, exclaiming that Tyrogue has wrought havoc in town for the last time.

Heading for Mahogany Town, Pikachu, Togepi and several wild Pokémon seem a little sick. Ash and friends go to the Lake of Rage to find a red Gyarados. Team Rocket comes to battle but they're beaten with the help of Lance of the Elite Four. Defeated, Team Rocket goes to a Rocket HQ where they meet there Team Rocket members named Shiranui and Tatusumi who are going to try and capture the Red Gyarados. They and other Team Rocket members, not including Jessie, James and Meowth, go on a search for the Gyarados. Lance disguises himself as a Team Rocket member and they capture the Gyarados while Ash and friends watch helplessly. The Gyarados is taken on a truck and Lance is still with them in disguise...