
A square yellow sponge named SpongeBob SquarePants lives in a pineapple with his pet snail, Gary, in the city of Bikini Bottom on the floor of the Pacific Ocean. He works as a fry cook at the Krusty Krab. During his time off, SpongeBob has a knack for attracting trouble with his starfish best friend, Patrick. Arrogant octopus Squidward Tentacles, SpongeBob's neighbor, dislikes SpongeBob because of his childlike behavior.

Sandy seeks Squidward's help to heal her sick tree, but his alternative gardening methods give her a headache; SpongeBob and Squidward search for the perfect birthday present for Mr. Krabs.

Mr. Krabs makes a wish that he could talk to money; SpongeBob competes against a patty-making machine; Squidward trains SpongeBob for a dance contest.

SpongeBob suspects Patrick of stealing his jellyfishing net; SpongeBob builds a ventriloquist dummy modeled after Squidward.

The friends become unstoppable after Sandy teaches them karate; before long, the entire town learns the martial art and joins the action.