Neely Capshaw, the unwholesome, psycho lifeguard who tried to frame Matt for sexual harassment, arrives back at Baywatch for a job as the switchboard operator and is greeted with a hostile reception from everyone, especially C.J. who personally holds Neely responsible for Matt's departure from Baywatch.

Neely and Cody try to keep the four people alive on the sunken oil rig until help arrives when Mitch, Stephanie and Logan must find away to get into the structure to rescue them before the air supply runs out. At the end, despite Neely's heroic attempts and proving herself to be a very good lifeguard during the rescue, the Baywatch team still resents her presence and plans to give her a hard time. Logan finally gives into Gator's demands for the credit of the swim wear, and Mitch finally decides to join a detective agency.