Squiddly is abducted by aliens who believe he is a typical Earth man. They take him back to their planet where they give him a series of tests in order to see if they would be able to take over the Earth.
Jealous when he sees that the dolphins at Bubbleland are considered greater stars than him. Squiddly runs away where he ends up inside a hotel. There the hotel manager starts chasing him, trying to capture him.
The World's Wrestling Champion, the Octopus, catches a cold so he can't take part in the big fight against the Crusher. His manager tricks Squiddly into taking the Octopus' place in the match.
Squiddly is getting bored with his life at Bubbleland, so he runs away where he accidentally joins the navy. There aboard ship he starts driving the Admiral crazy.
Because the Chief won't let Squiddly watch his favorite Western TV show he travels to the Wild West in search of adventure. There he meets the outlaw, Shotgun Sludge, who wants to shoot him.
The TV show, Sea Grunt, is being filmed at Bubbleland where the actor that was playing the squid in the show quits. Squiddly is given the part but soon learns why the actor quit in the first place.
Squiddly runs away from Bubbleland, because he's sick and tired of having Chief Winchley order him around, but ends up on a pirate ship. There the Captain is treating him even worse.
Squiddly sneaks out of Bubbleland to the beach, where he sees a girl squid and falls in love with her. But another male squid challenges Squiddly to a duel to win her love.
Squiddly is thrown out of Bubbleland, but when Chief Winchley goes to take him back, he accidentally takes a man in a squid costume who was on his way to a masquerade party. Ironically, Squiddly arrives at the party.
Out at sea Squiddly and Chief Winchley find a treasure map in a bottle and go on a treasure hunt. But once they find it, the question comes who gets to keep the treasure.
Squiddly accidentally crashes into the desert, where the people living there believe he is an alien monster from outer space. Then the army starts chasing him.