A barrel from the world above falls into the ocean, letting out a reddish fluid that makes people frightningly zany. Meanwhile, the Snorks are performing in a talent show and Dimmy really sets a bomb with his jokes. Then the red stuff seeps in and makes everyone laugh. Of course, it gets out of hand when the entire town starts laughing crazily. The Snorks go out in the Silverfish to find the the problem at the Great Reef. The barrel is about to fall in the reef, but the Snorks get it out in time. But Junior and Occy, under the spell of the red stuff, take over the Silverfish! Eventually, Occy gets back to normal and so does Junior.

The Snorks enter a seahorse race. Junior, with the help of little Willie, cheats in the race. All-Star and Junior have to compete in a Snorkel chase. Junior thinks that All-Star's seahorse is all washed up because his horse ""won"". All-Star tries to prove him wrong by training his horse Sea Biscuit. Galeo creates a machine for the Silverfish with a magnetic compass. All-Star takes it by mistake and finds out that Junior and his horse cheated. All-Star and the Snorks cook up a plan to get back at Junior.

The Snorks take a field trip to the Snork Ness. They can go anywhere except any of the caves because of the Snorkness monster. An old man tells them that the Monster likes kids- for mysterious reasons. Casey encounters the moster while picking weeds and Occy goes into the cave. The Snorks check it out and find a big pearl. It turns out that the pearl is an egg laid by the Monster. The Snorks take the Silverfish with a communicator that lets them talk to the monster. Casey tames the monster and the monster tells them that her egg is gone and she wants it back. All-Star goes to Junior's house and try to get the Egg back, but the Wetworths catch them. The egg hatches and out pops a baby Snorkness monster!

Galeo displays his new invention called the Minaturizer, which shrinks things. All-Star watchs the invention, but Dr. Strangesnork steals it without All-Star looking. Occy then follows him and his cat to his laboratory. They are caught by the scientist, which turns out to be Galeo's brother. He uses the minaturizer to shrink his mind swapper to take over Snorkland, but he uses it to swap Occy's and All-Star's minds. All-Star (as Occy) tries to warn governor Wetworth about Dr. Strangesnork's plan, but he dismisses him. Occy (as All-Star) then guides Casey to Strangesnork's lab. Meanwhile, the Snorks find out that All-Star is really Occy. Dr. Strangesnork then goes to the auditorium where the Governor is giving his speech. The Snorks catch up to him, but he gets away. But not before Galeo swaps All-Stra and Occy back to their original selves.

Junior finds a treasure map and recruits Casey, Daffney and Tooter to help him find it. They meet a salmon named Wilbur who is ridiculed for being too puny to swim upstream with the other salmon. The only obstacle they face is a big bear who wants to eat them. The Snorks save him and take Wilbur to the top of the river with the other salmon. The big bear catches them, but Wilbur and the Snorks get him back big time. Wilbur repays them by helping them find the golden castle. Onlt it's a golden castle hamburger joint!