Ariel rescues a Bad-Luck Creature named Lucky, putting all of Atlantica in a panic, and must make her own luck when Ursula comes after the creature.
Ariel stumbles upon a Bad Luck Creature. Legend says that the Bad Luck Creature brings bad luck wherever it goes and will cause a lifetime of bad luck to whoever dares touch it. It's that so-called legend that causes all the other creatures of the sea to treat the poor Bad Luck Creature with indifference at best and cruelty at worst. In fact, the infamous sea witch Ursula has targeted the creature a few moments before Ariel discovers it and takes it to safety, blaming it for her inability to cast a decent spell.
But Ariel, of course, doesn't care about silly stories. She chooses to help the Bad Luck Creature, hugging it gladly and protecting it from Ursula. She also decides to name it Lucky, and takes it back to her room to treat it for its injury.
Back at the palace, Ariel enlists Flounder and Sebastian to help her. Flounder caves first, because he trusts Ariel. Sebastian caves eventually. As the gang are seeing to Lucky, Flotsam and Jetsam wander by her room, showing Ursula the creature's whereabouts.
Just then, King Triton returns. Ariel immediately tells him about Lucky, which causes alarm among the Atlanticans... alarm that is vocalised by Arista, who demands that Lucky be thrown out of Atlantica. But before a decision can be made, Ursula makes her appearance, demanding Lucky to be turned over to her. As Ursula does her snazzy showtime number, Sebastian concocts a fake Lucky out of foodstuff which, once Ursula spots it, is blown up into smithereens. Believing her job done, Ursula leaves. At first Ariel is distressed, but then the real Lucky comes out. King Triton, who knows the silliness of the old legend, invites Lucky to stay in Atlantica.
- This is the first of four appearances by Ursula, who was the main villain of the feature film, The Little Mermaid.