SpongeBob walks outside and admires the peacefulness of the neighborhood. Suddenly, he loudly sets up a bubblestand outside of his pineapple in order to teach others how to blow bubbles like he does. This annoys Squidward, who requests SpongeBob to be quiet. SpongeBob slows down and eventually finishes his stand. For 25 cents per lesson, he attempts to teach Patrick some of his tricks, showing him the technique that allows him to blow bubbles in various shapes and sizes.
One elephant-shaped bubble (Which Patrick calls a giraffe) floats into Squidward's window, thus attracting his foul temper. An angry Squidward marches out and attempts to blow a bubble that will upstage SpongeBob without using the technique, but he fails. He tries this over and over again, while SpongeBob and Patrick try to remind him of the technique. Finalley he gives in and sarcastically imitates the technique. He succeeds and creates a bubble so large it floats away as SpongeBob and Patrick cheer. Filled with pride, Squidward goes back into his house and plays the clarinet. However, the large bubble returns and engulfs his house completely. It floats toward the surface as he plays his clarinet. Suddenly, the bubble bursts, sending his house crashing to the sea-bottom. Squidward struggles to play his clarinet afterward.