A flood of new recruits arrive at Baywatch to try out for rookie school, who include Hobie, Manny, and newcomers; Lani McKensie, a part-Hawaiian, part-Caucasian wanting to be a professional dancer, April Giminski, a naive, design major college student unfamiliar with swimming in the ocean, and Skylar Bergman, April's roommate who wants to become a paramedic.

During the second week of rookie school, April is injured by a bump on the head caused by a mysterious wave runner rider which harasses her, Lani and Skylar and nearly causes her to be thrown out of rookie school. After visiting his home neighborhood, Manny becomes more determined to become a lifeguard than anything else.

Veteran lifeguard John "J.D." Darius arrives at Bayside and competes with Taylor Walsh, an attractive newcomer, for Mitch's old job as lieutenant and Mitch must make his own decision as to which one will be the most eligible one for his former job. Although J.D. has more experience as a lifeguard than Taylor, he is plagued by haunting memory of failing in a rescue at Daytona Beach where he worked some years ago.

On Memorial Day weekend, Mitch, April, and Skylar find a lot of problems on their hands after discovering the dead body of an elderly Navy veteran whose two elderly Navy buddies of his want to give him a proper burial in the ocean.