Ash, Misty, and Tracey are riding Lapras once again, and Ash is admiring his badges. Tracey tells him that he only needs two more badges and he'll be able to battle in the Orange League, and he expresses his eagerness to get them. The see Moral island appear over the horizon and decide to turn in for the day.
Night falls, and Ash and his friends find a Pokemon Center to stay the night in. Ash calls Professor Oak, who tells him that a 300 year old trophy from the Orange League has been found in a sunken ship just offshore. It's been put on display at the local Museum of Arts, and they decide to check it out the next morning.
Later that night, at the museum, three dark figures climb down from a window. It's Team Rocket, and they've come to steal the trophy to give their boss. Within moments, they find it. Meowth puts on some special glasses and tells Jessie and James that there are several security beams guarding the trophy. The only way to get at it is from above, so they use James. They lower him down, and he grabs it. They hurry out, laughing. Meowth suggests that they celebrate and James trips, leaving an imprint of the trophy in the soft soil.
The next day, Ash and his friends approach the museum and see a large crowd of people standing at the entrance. They ask Officer Jenny what the matter is, and she tells them that someone has stolen the trophy. The only clues are some footprints and a mysterious imprint in the ground. Disappointed, they make their way to the shore to set off again. Ash stumbles over something, which turns out to be James's leg. They peer over a bush and see Team Rocket waking up from the long night of celebrating they had had. They incriminate themselves in front of Ash and his friends, and they realize what the Rockets did.