After completing rookie school, Logan earns the title "Rookie of the Year." Caroline begins her first day on the job as a lifeguard, and her infatuation with Logan causes her to miss a rescue. Hobie befriends a young boy who is ashamed of his father's dwarfism; the father almost drowns while saving a girl and her dog.

Treasure enthusiasts flock to the beach when a radio DJ announces a competition for hidden treasure, and Matt and C.J. become involved in the festivities.