This school only appears in the episode "Phoon". Lilo decides to temporarily quit experiment hunting (after an unfortunate mishap) and go to Hula Hip Hop Fusion school. She hangs out with some rich hippie girls and impresses them by telling falsehoods about her life.
Sometime later, Gantu arrives at the gate of the school, thinking that Lilo was hiding Experiment 540 (Phoon) from him. Lilo tries to cover up the situation by telling the hippie girls that Gantu is her eccentric uncle Chester who isn't quite right in the head. Due to the blow he took to the head earlier (when Phoon blew a palm tree onto Gantu's noggin), Gantu believed the lies that Lilo told the hippie girls, and ended up thinking that aliens were only figments of his imagination. He then leaves the school and decides to go surfing at the beach.
Sometime after, Stitch (dubbed Wenceslaus by Lilo) arrives at the school and attempts to tell Lilo about Phoon's hurricane. The hippie girls initially question Stitch's body language, but then assume he is an exotic pet. Unfazed by their opinion, Stitch tags along with Lilo and the hippie girls.
Later, a mutated Phoon arrives at Hip Hop Fusion and wreaks havoc with her devastating blasts of wind. Lilo lies to the hippie girls even more, until Jumba and Pleakley arrive to try and stop Phoon's rampage. Eventually, Lilo tells the hippie girls the truth about everything, causing the girls to shun Lilo and tell her that she's weird, like Mertle would do. Lilo then quits Hip Hop Fusion school and makes amends with Stitch, Jumba and Pleakley.