Just when the media frenzy about the so-called "Creature in the Bay" subsides, the unseen sea monster attacks again by sinking a fishing trawler. Mitch and Devon Conner, a fellow lifeguard and environmental activist, suspect more about the mysterious attacks. At the same time, Kaye Morgan investigates an offshore oil company's rights for drilling and thinks there is a connection between the company and the creature in the bay. Meanwhile, Linda lusts after Mitch after having dinner at his house. Shauni tries to get Jordan and Tiana's mother to let them join a lifeguard youth group to keep Jordan off the streets, while she finally comes to terms with her stern father. Also, Captain Thorp finally gets the first "Scarab" motorboat for Baywatch and helps Mitch and Devon solve the mystery of the creature in the bay.