Ash is still upset that he lost his last match. He's been lying in his bed ever since and his friends, mother, and Professor Oak are getting worried. Misty comments that he should be happy that he made it as far as he did and goes in to try to cheer him up. She offers to get something to eat or take a walk, but he refuses. She tells him that she's only trying to help. They start to argue about how good a trainer Ash really is when Professor Oak comes in. He tells Ash that he should have trained Charizard better. Misty and Ash start to argue again and Pikachu, fed up with it all, shocks everyone in the room.
Richie's next battle is about to begin. He sits in a locker room and talks to his Pok�mon. The door opens and in walks Ash, Misty, and Brock. They wish him luck and the battle begins. Both trainers are fairly equally matched and they are soon both down to their last Pok�mon. Richie's opponent, Assumpta, sends out Ivysaur and Richie sends out Sparky. As soon as he pops out, Sparky gets a beating by Ivysaur. None of his Thundershocks are connecting. Ivysaur jumps into the air and unleashes a Solar Beam, hurling Sparky to the ground. Just as he gets up, he is hit by Ivysaur's Tackle. He struggles to get up again, but it's no use. Assumpta wins. Richie runs up to his Pikachu and makes sure he's OK. In the stands, Ash and his friends are visibly disappointed.
Later, Ash joins Richie near a lake. As their Pikachu play, they talk about their losses. Richie says that he would've trained harder if he'd known how tough the competition would be. He then comments on how losing is good for you, and Ash realizes how much of a baby he was. He and Richie promise to become Pok�mon Masters no matter what.
Suddenly, both Pikachu fall into a hole. Richie and Ash run over to see what happened, and they too fall into a hole. Team Rocket appear at the surface and laugh at them. They say their motto and muse over the fact that nothing beats a hole as a trap. Ash tries to climb up the side, but slips down. When he lands, the bottom falls out and he and Richie plummet another few feet. Team Rocket use a cage at the end of a fishing pole and pull both Pikachu out of the other hole. They try to shock them, but James tells them that the bars absorb electricity. They start to make their getaway when Ash and Richie rise out of the other hole, clinging to their flying Pok�mon.
Ash sends out Bulbasaur, who tries to grab the cage with his vines. James pulls it out of the way and Jessie sends Weezing out with a Smog attack. Pidgeotto blows the gas back at Team Rocket with Gust and Richie sends out Zippo. After Bulbasaur frees Pikachu and Sparky with a Razor Leaf, Zippo ignites the gas with a Flamethrower.
As Team Rocket run around in pain, Ash has Pikachu and Sparky recharge the cage, he sends out Squirtle who extinguishes Team Rocket with Water Gun. The Pikachu then toss the cage into their hands where it releases it's energy, blasting Team Rocket into the air.
As the sun sets, Ash and Richie congratulate each other. Brock and Misty run up and invite him and Richie to dinner, after which they'll go to the closing ceremonies. Ash remembers about these ceremonies, where all the trainers get to march into Indigo Stadium again and get a League badge. They all hurry off with their Pok�mon soon behind.
Later that night, the closing ceremonies begin. Everyone marches back in, waving. President Goodshow gives each and every one of them the special badge. As this is going on, however, Team Rocket is digging a hole outside. They aim to dig under the field and steal the Pok�mon.
Back inside, the top three trainers wave from the stage amid the cheers of the crowd. Team Rocket continues to dig as fireworks go off in the sky. Meowth listens at the ground above and tells Jessie and James to dig up. Unfortunately for them, a huge bomb falls through. It goes off and Team Rocket is blasted off again.
The next morning, all is quiet. Ash and Richie sit in the stands talking. Their Pikachu come running up to them and are warmly greeted. After Ash reminds him of their promise, Richie sets off. Ash remembers the highlights of the League games, all from when he saw Moltres at the opening ceremonies to when he lost to Richie. He gazes at the sky and he hears Misty's voice. He looks over and sees his friends, mom, and Professor Oak. Smiling he asks Pikachu if he's ready to go back to Pallet Town. He runs over to his friends. His first adventure has now ended, but his next one is just about to begin.