Ash and co. are at a house with a professor. The Professor holds out a device that measures the level of happiness between a trainer and his Pokémon. He holds up the device to Ash and Pikachu. The heart on the device grows super big, meaning that they are very close. Brock wants the professor to measure his friendship level with Croagunk. The boy asks how long Brock has had Croagunk for. Brock says that he has only recently captured it. The professor is surpised at his readings...

In Kotobuki City, it appears that people are training for the Pokémon Contest. A trainer tells his Skarmory to use Steel Wing, and another trainer tells her Altaria to use Double Team. Ash and co. have arrived at the scene too. Dawn asks her Pokémon if they are also ready to train.

Dawn is looking at a magazine while walking through the city. She is trying to find a Pokétch shop. Ash doesn't know what a Pokétch is. On the radio is someone who explains what a Pokétch is. On a big TV screen is two people carrying Pokétches. They are similar to watches. Dawn shows Ash and Brock another picture in her magazine. She says that all the great coordinators have a Pokétch, so she wants one too. They go to a shop that sells Pokétchs, but the shop manager tells them that they are sold out. Dawn is sad that she wasn't able to get one. Brock offers that they get something to eat. Suddenly, up ahead are three people dressed as clowns who are giving away Pokétches. Ash and co. walk up to the clowns. Team Rocket is in the clown disguises. They think for a moment, and then they give Ash, Brock, and Dawn a Pokétch. Dawn thanks them for the item. Dawn is happy to finally have a Pokétch, and she puts it on. Ash and Brock puts their Pokétches on too.

A Pokémon walks up to Ash and co. Ash looks the Pokémon up in his Pokédex. It's a Shinx. It begins to talk to Ash and co. Dawn wonders what Shinx is trying to say. A boy walks up to them and tells them that their Pokétches are fake. Dawn doesn't believe the boy at all. She claims that they are real. The boy takes the Pokétch off of Dawn's arm and puts it in water. The water has washed some of the paint off, and all that's left is a piece of metal. Dawn now believes the boy. The boy tells them that his dad wouldn't make something that bad.

The boy leads Ash and co. to his dad. The boy's name is Teruhiko. Teruhiko's dad is the president of the Pokétch company. Because of the fake Pokétches, he has cancelled all the selling of the Pokétches. Dawn asks the president if she would be able to get a Pokétch before the contest. The president tells her that no one can get one until the fakes are gone. Teruhiko asks Dawn if she is a Pokémon coordinator. Dawn says that the contest in Kotobuki City will be her first one. Teruhiko realizes that Dawn is just a beginner. Dawn tells Teruhiko that even though she is a beginning coordinator, her Pokémon are still good.

The president wants to test out a new device of his with Dawn. It measures the friendship level with a trainer and their Pokémon. Ash wants the president to do him and Pikachu. The president's readings states that Ash and Pikachu are very close. Brock wants the president to test out the friendship level with him and Croagunk even though he has just captured it. Brock sends out Croagunk, and the president begins to measure it. The president is suprised to see that Brock and Croagunk are really attached to each other, even though Brock just got it. Dawn now wants the president to measure her friendship level with Piplup. Dawn is shocked to find out that the reading the president got was low. Teruhiko teases Dawn about how she may not do good in a contest with a low reading like that. Dawn wants the president to measure the friendship level with Teruhiko and Shinx, however Teruhiko is still a student and not a trainer. Dawn tells Teruhiko that he doesn't even have any Pokémon yet. Teruhiko knows, but even when he does have a Pokémon, he thinks his friendship level will be higher than Dawn's. The president and Teruhiko then say goodbye to Ash and co.

Ash and co. are at a Pokémon Center now. Dawn is angry that she didn't get a Pokétch, and she is angry that she got teased by Teruhiko. Dawn now wants to win the contest no matter what happens. Suddenly, Pikachu senses something. They look out the window, and they see a group of Pokémon slowly walking in the streets. Meanwhile, the president has a fake Pokétch in his hand and wonders why anyone would try to use them. He sees something different in the inside of the Pokétch. Apparently, there is a small device in it that is making the sound of a Psyduck. Suddenly, Shinx becomes hypnotized, and it walks out of the room.

Ash and co. are outside. The Pokémon are walking right past them. Ash and co. wonder what the Pokémon are doing. Soon later, the president and Teruhiko walk up to them. They tell Ash and co. that a voice of a Psyduck came out of one of the fake Pokétches, and then Shinx ran away. Meanwhile, Team Rocket is behind a big vault. The Pokémon are being led into the vault because Team Rocket is controlling a Psyduck's Hypnosis attack. Ash and co. are chasing after the Pokémon. Team Rocket hides behind the vault. They notice that Pikachu isn't hypnotized. Teruhiko notices that Shinx is in the vault too. He runs to save Shinx, but the door closes. Then Team Rocket comes out, and they say their motto. Then Team Rocket's balloon appears, and the vault attaches to the balloon. Two rocket jets come out to carry the balloon in the air. Teruhiko is worried about Shinx, but Dawn assures him that Shinx will be okay.

Dawn sends out Piplup. Piplup uses Bubblebeam, and Pikachu uses Thunderbolt. Before the Pokémon can attack, Meowth pushes a button. Two cages come out and traps Piplup and Pikachu. Dawn still has one more Pokémon left. She sends out Buneary. She tells Buneary to use Ice Beam. Buneary uses the attack, but it can't reach Team Rocket. Teruhiko thinks it's all over. Dawn doesn't want to give up yet. She tells Buneary that they have to unite their hearts into one whole. When that happens, Buneary uses Ice Beam again, and this time it freezes Team Rocket. The rocket jets die out, and the cages release Pikachu and Piplup. Ash sends out Starly to rescue them. Starly is able to rescue Piplup, but Pikachu is still falling. Ash runs to Pikachu's rescue. Team Rocket's balloon crashes, and the door to the vault breaks. The Pokémon are free from the Hypnosis. The president tells all the Pokémon to go back to their trainers. Teruhiko is glad to have Shinx back.

Team Rocket is angry, and they break out of the ice. They jump down from the balloon, ready for battle. Jessie sends out Seviper, and James sends out Masukippa. Seviper uses Poison Tail, and Masukippa uses Bite. Pikachu can't battle in its condition, so Dawn steps in. She tells Piplup to use Peck, and Buneary to use Dizzy Punch. Both of Team Rocket's Pokémon are defeated from the attacks. The president then tells Shinx to use Spark on Pikachu. This will heal Pikachu. When the recharge is done, Pikachu feels good as new. Then Pikachu uses Thunderbolt, blasting Team Rocket off again.

Officer Jenny and Nurse Joy pull up. They ask what happened with the Pokémon. Brock tells them that the three crooks are gone, and that they can enjoy themselves. Teruhiko congratulates Dawn on her battle and wishes her the best of luck at her first contest. The next day, Dawn finally got her Pokétch. Everyone is busy preparing for the contest. Dawn hopes to do great at her first contest.