Hobie is in love with a young girl named Bridget. Mitch manages to convince him to invite himself to her party and he does so. Gayle is coming to Los Angeles for a visit and she is bringing a surprise. Mitch and Hobie become very disappointed when they find out that the surprise is Gayle's new fiancé Ken Jordan. When Gayle and Ken have tied the knot, she wants Hobie to come and live with them, and this upsets Mitch. When Gayle, Hobie and Ken fly to Acapulco for their wedding, Elaine, the pilot loses both of the engines in the air and the plane crashes into the sea. Mitch hears everything over a mobile phone.
Hobie, Gayle and Ken are trapped inside the plane. Ken finds the pilot Elaine, but she is dead. Inside the rapidly flooding compartment, Hobie courageously works to free Gayle, who is unconscious and pinned under her seat. Hobie can't pry his mother loose and asks Ken to help him. But Ken panics and tries unsuccessfully to escape the cabin by himself, using up valuable oxygen in the process.
Hobie meets a beautiful girl named Lauren Taylor in junior lifeguards. But unfortunately for him, she has a disease called aplastic anemia and has less than a year left to live. Her biggest dream is to save someone's live. Therefore the Make-A-Wish Foundation placed her at Baywatch. Hobie falls in love with her without knowing about her disease. During an exercise, Lauren almost drowns and Hobie has to rescue her. Then her mom Mary decides that it's time for her to go back to Portland again. When Hobie hears about this, he decides to take her to a place called Lover's Cove. It's said that if you kiss someone as long as the bells are ringing, your love will last eternally. He overhears C.J. telling Jackie about it.
When a maniac on a motorcycle is terrorizing everybody on the beach, including C.J, John D. Cort comes to the rescue on his new horse Apache Warrior. He tells C.J. he is back for good and they fall in love again. But both Mitch and C.J. notice that something is wrong with Cort. He doesn't shake people's hands and he almost runs over people on his motorcycle.
Slade has returned to Los Angeles and Summer doesn't know anything about it, until her friend Ethan tells her about it. Later when Matt sees Summer and Slade together, he gets jealous. But Summer tells him that she will tell Slade about them. Then before Summer gets the chance to tell him, Ethan tells Slade about Matt and Summer's relationship. Slade confronts Summer and she tells him the truth.
Matt and Slade go surfing and the one who falls first backs off and lets the other one have Summer. Matt falls first, but his board falls into a cave. An octopus lives in the cave and it takes care of the board. Matt and Slade tell Mitch about it and he tells them about the cave. The cave is said to be a surfboard cemetery and Ben visited the cave once. When Mitch has told them that, Matt and Slade decide to explore the cave and Summer agrees to go with them.
Caroline Holden, Stephanie's sister comes to Baywatch. She meets Stephanie when she falls off some rocks while watching Stephanie when she is testing a new wave-runner. She tells Stephanie that she is engaged to a man named Frank Randall. He is an environmentalist, and dives looking for pollutions. When he is collecting underwater soil samples, he is attacked by two men. They force him to reach the surface at high speed. Therefore he gets the decompression sickness and ends up in a decompression chamber, clinging for his life. Caroline is devastated and tells Stephanie to go to Frank's house and get her some clothes.
Mitch meets two boys named Chuck and Bobby on the beach while they are sleeping in a tent. They have come from Kansas for Bobby's 10th birthday. Later the same day, Mitch meets the two boys again and teaches them how to throw a Frisbee.
Mitch is training for the annual Ironman competition and Garner documents everything on a videotape. Everyone tells Mitch to join the senior league, because he is old enough to qualify for it. But he wants to prove that he is still as good as he used to be and tortures himself during his training. It's obvious that he is going through a mid-life crisis.
Some gang-members have sprayed their symbol on headquarters. The same gang also robs Hobie when he has sold some A & W soda on the beach. Meanwhile, Stephanie is upset because Mitch hasn't told her about the hiring of a new substitute lifeguard while Newmie is on vacation. But Mitch tells her she will like him. The substitute is named Carlos and he and Stephanie immediately fall for each other. They see the gang robbing Hobie and go there to help him. Carlos runs after them and Stephanie gets the impression that he knows the girl in the gang.
The episode starts with Stephanie and Barnett rescuing a diver in trouble. Baywatch hosts the Special Olympics for the first time. The Olympics is held by Mitch's old friend and elite gymnast Mary Lou Retton, who won 5 gold medals in the 1984 Olympics. She asks Mitch to take care of a troubled kid named Darnel while Stephanie to take care of a girl named Sammy. Darnel's father abandoned him when he was a little kid, and Mary Lou has managed to track him down.
During the filming of a commercial out at sea, a woman falls of her jet ski and Matt has to rescue her. The woman turns out to be Jessie, the biker Matt met a year earlier (Episode 51: "Point Doom"). Mitch wants a lifeguard to be present during the filming and Matt is selected to go. Summer immediately becomes jealous because she knows about Matt and Jessie's previous meeting.
Some old lifeguards known as the Red Knights are having a reunion at Baywatch. Among the lifeguards are the legendary Bud Gates who was the first lifeguard ever to swim to Catalina and back in the nude. But after a couple of years he mysteriously disappeared from the beach. Later it's revealed that he is convinced he saw Marilyn Monroe on the beach one day. When he was about to make a move on her, he got a call that someone had seen sharks at Topanga Beach. Later when he got back, she was nowhere to be seen. When Marilyn Monroe died, he retired as a lifeguard and went back to Omaha and opened a hardware store.
The four best lifeguards in a competiton will join Stephanie for a trip to San Diego. Matt, Summer, Mitch and C.J. are the ones who end up going with her. They go to San Diego in order to show the effectiveness of the scarab because the San Diego lifeguards don't have one yet. The gang stays at the Hotel Del Coronado.
When Mitch and Buzz doesn't come back, Hobie and Kyle become worried and tells Stephanie about it. She alerts the Coast Guard who finds the boat but not Mitch and Buzz. At sunrise, she and C.J. go out in the scarab and they find Mitch and Buzz just before they are about to reach dry land. They are both taken to the hospital, where they recover. Buzz's heart doesn't need a surgery, but it could have ended up pretty bad. When Buzz finally wakes up, he tells Mitch that all he could think of out there was Kyle, and that's why he has decided to take care of him.
When a woman named Gwen arrives at Mitch's tower, he hardly notices her. But Gwen spends her afternoon at his tower and makes an awkward conversation. She tells Mitch that she and her sister is visiting the beach in their trailer. When Mitch doesn't pay any attention to her anymore because he finds two beautiful girls more fun to be with it, Gwen decides to leave. When Mitch is about to close his tower, Mattie, Gwen's sister arrives. Mitch starts to like Mattie and accepts her invitation to dinner the next night in their trailer without knowing her secret. It turns out that Gwen and Mattie is actually the same person.
An investigative reporter named Catherine Larsen is working on a story she has named "The Falcon Manifesto". The story details the sale of U.S. military technology to foreign governments by Edward Falcon. Because of her story, Falcon has put a contract on her life and the NBI wants to put her into their protective custody. But Catherine trusts no one and heads of to Catalina where she hides the manifesto in an old sofa.
When TV-producer Don Brand visits the beach, he is delighted to discover that the actions that take place on the beach are perfect for a TV-series. He calls the TV-series "Rescue Bay". He gets inspired when he witness Stephanie, Matt and Summer rescue two men on a boat, and when Garner catches a bad guy with the help of a kid's kite. Brand is convinced that he has a number one show in his hand.
Famous country-singer Jesse Lee Harris is at the top of his career and because he tours constantly, his wife Crystal left him with their son Jackson. The problem is that she didn't tell him where they went. But one day, Jesse receives a Venice Beach postcard from Jackson and he is determined to find them. Therefore he takes a detour to Los Angeles on his way to Las Vegas and hopes to find his family there and get the marriage back together again.
When the Baywatch gang find out that their jobs are in jeopardy due to budget cuts, everyone decide to volunteer as civilian lifeguards. At the same time on the beach, a couple named David and Julia is having a romantic time. When David proposes to Julia, the engagement ring falls into the water. David dives in after the ring, but the onrushing tide forces a rock to fall down on his hand and he is trapped.
When a man is seen drifting in the ocean, Matt and Stephanie are called in to rescue him. But as they are approaching the victim, a Coast Guard helicopter waves them away from the victim, and they rescue him instead. Later Stephanie and Matt confront one of the Coast Guard members Scott Daniels about calling the scarab off. Scott explains to them that they couldn't see it, but the scarab was about to travel across a fish net, which would have folded the scarab propellers.
When Matt is out water-skiing, he sees a young woman being swept into the ocean. When he has rescued her, she tells him she lost all her money in the water and that she needed the money for her audition. She wants to become an actress. She introduces herself as Rachel Henderson, and Matt feels sorry for her and loans her 0.