The Proud Family comes to visit Hawaii and stay in the "Bed and Not Breakfast" for their vacation. While Jumba and Pleakley give Oscar, Trudy, Suga Mama, and the twins a ride to Wizard Kelly's wrestling match, Lilo decides to help Penny with her school report and lets Penny get more acquainted with Stitch.
In the meantime, a squirrel appears inside a window of the "hotel" and takes an interest in Experiment 397's pod. Mistaking the pod for a nut, the squirrel attempts to eat it, but is unable to. The squirrel then throws 397's pod into a bowl of bath bombs. Suga Mama, while soaking in a hot tub, reaches for 397's pod, mistaking it for a bath bomb. Suga Mama then drops the pod into the bathtub, activating 397 (named Spats). Upon activation, Spats zaps the squirrel and Puff (who was sleeping on a throw rug), causing both animals to brawl with each other. Spats then zaps Bebe and Cece, causing the twins to clash with each other, followed by Oscar and Trudy Proud, who fight as well.
Lilo and Penny later notice Spats on the loose and decide to capture him before Gantu does. However, Lilo and Penny get zapped and start fighting with each other. Stitch tries to break up the girls' conflict, even spinning Penny like a top. But, she stops and they continue arguing, Stitch grabs Nani's dune buggy, tosses Penny and Lilo in and then straps them in, squishing them together. Later that night, Stitch and the girls arrived at the Birds of Paradise Hotel, where Wizard Kelly is hosting "Wizard Kelly's Smack-up Throw-Down: Hawaiian Style, Y'all".
As the girls keep arguing, Spats keeps zapping people, including the wrestlers, and Stitch tries to catch Spats. Meanwhile, Penny begins to sulk about her vacation and finds a way to dissolve Spats' effects, by counting to ten (which Trudy told everyone to earlier, when the Proud's luggage got lost). When she is about to go tell Lilo, one of the wrestlers flies out of the ring, missing Penny by two inches, followed by his shoe and Spats. Penny catches him and scolds him for his mischief. But, after seeing his cuteness, Penny becomes smitten by him.
Gantu then shows up and threatens to take him away from Penny. Suga Mama shows up to defend her granddaughter and the alien experiment. Spats zaps Suga Mama and Gantu and they take their argument into the ring. Meanwhile, Lilo, still under Spats' effects, is still not talking to Penny. Then, Penny uses her count-to-ten strategy and it works. Soon enough, everybody else does it and they are back to normal. The next day, Lilo and Stitch found Spats' one true place; it was with Wizard Kelly and his pro wrestlers.
Also, Mr. Cooper, the reviewer who stayed in their "hotel", gave a terrible review. But things all changed when the girls and Stitch come in through the door. Penny managed to get her school article finished and titled it: "My Hawaiian Alien Adventure". The girls take the article it to the town Gazette, where it gets printed. Lilo said that it would bring in more guests and ones that want to look for aliens too, and all is well.
- Moral: Fighting never solves anything, and don't hold on to your anger; you have to let go of it.
- Stitch and Pleakley are the only main characters to not get zapped by Spats.
- Mr. Cooper is a new character who appears in this episode, although it is unknown which actor did his voice.
- Coincidentally, this episode also premiered on the same night after a new episode of The Proud Family, and before a showing of Monsters, Inc..
- Nani does not appear in this episode, but she is mentioned.
- It is debatable whether or not this episode is considered canon to The Proud Family series, as Spats never appeared in the actual series. However, The Proud Family had just about ended at the time of this episode, and characters from the Kim Possible series had a crossover four episodes later.