The team is giving a report on their mission to retrieve a mysterious box, while trying to keep the Delightful Children from getting it. Unfortunately, each operative's version of the story is... exaggerated to say the least. Can their superiors find any truth in their speculative snafu?

The KND take a vacation to the beach (and Numbuh 1 promptly leaves, since he hates the place), where Numbuh 3 is quickly kidnapped by the armored Kinights of the Round Towel, who drag her before King Sandy, a miniature monarch who quickly falls in love with her! Naturally, the concerned Numbuhs 4 with Numbuhs 2 and 5 confronting the beachcombing brat in his enormous sandcastle... but they are soon overwhelmed. Can the KND topple this tiny tyrant before high tide?