Just after Ponch and Bruce respond to a call about a screaming girl,they arrive and find an accident including hot tar. She was holding the cover to a "Sea Thing" comic book. At the hospital, Bruce tells Ponch about Sea Thing just before they visit Anna. She has amnesia. Ponch and Bruce go to check out the eccentric guy who's supposedly behind the "Sea Thing" comics, and think he's hiding something.
When Anna is released from the hospital, she goes at CHP Central with Kathy.Then,Mr. Woods calls Central using the nurse's voice so he can get Kathy's address. That night, as Ponch and Bruce arrive at Kathy's, Anna is being attacked by the Sea Thing. Ponch runs into the water to wrestle the Sea Thing. It gets away.The next day, Anna swears her mom's alive. Getraer agrees to dig up the body.
Later, everyone visits the morgue. Ponch helps open the casket. All that's in it is a fake head that shatters when exposed to the air. Ponch, Bobby, and Bruce search Woods' house and find nothing. At Kathy's house, Anna answers the phone and believes it's her mother. She fakes getting a shower and sneaks out the window. When she goes to see her mother, she discovers it's really Woods in drag. When Ponch, Bruce, and Bobby arrive at Woods', he tells the whole story of how he locked up Anna's mom to take credit for creating the Sea Thing. When Ponch tries to arrest him, he turns out to be a hologram. The real Mr. Woods is escaping in his hearse. The CHP chases him and arrests him after the hearse rolls onto the beach.
Interestingly,this is one episode that is directed by Robert Pine,who plays Getraer.It is rather unfortunate that CHiPs tried to be creative and refreshing but in a wrong way.It tried to be a science fiction show instead of a cop show.In the end,the decline of the TV show has been fully realized in its penultimate episode as it tried to change its identity in a ridiculous manner.