When TV producer Don Brand visits Baywatch, he decides to create a television show based on lifeguarding, which creates havoc with the Baywatch crew. He calls the series Rescue Bay.

Mitch deals with budget cuts that could take lifeguards off the beach. With their jobs jeopardized, everyone decides to volunteer as civilian lifeguards. At the same time, David and Julia are having a romantic time on the beach but lose an engagement ring in the water. Matt and Summer save the young couple from drowning.