Patchy organizes a house party, and all the guests come except for SpongeBob himself, who can't understand what's written on the invitation because it was destroyed by the water, so ironically, he and Patrick throw it in the fire. Patchy then introduces us to his special guests including a live action King Neptune, Minnie Mermaid and Long-Beard the Pirate.
In Bikini Bottom, while shopping at the Barg 'N-Mart, SpongeBob finds a "Plan Your Own Party Kit," and decides to throw a party using the kit. Despite the kit advising to invite "only your closest friends," SpongeBob invites nearly everyone in Bikini Bottom. SpongeBob wants the party to go accordingly to plan, so he decides to make sure things go in order. He makes a brutally specific schedule for different activities (including when the guests arrive) and cards for people to use for conversations.
In the second live-action segment, Patchy decides to have a dance lesson and promotes his Patchy's Dance Tips, however, before Patchy can teach his friends how to dance, a band that Potty has hired for the party arrives. Patchy asks Potty who he got and Potty says it's his favorite band, "The Bird Brains." Everybody loves the Birdbrain's music, but Patchy hates it because it is too loud and it blasts him out of his house. Patchy then tells them it's time for them to literally walk the plank. Unfortunately, he forgets that they're birds and can easily fly.
Back in Bikini Bottom, later that night, all the guests arrive at different times. SpongeBob hands them all the topic cards, which causes an awkward environment. After the last guest arrives, SpongeBob goes into the closet. After a while, SpongeBob sees everybody having fun and starts to panic. He stops all the fun and music, and brings them all to the couch to do one of the scheduled events; reading aloud from the funnies. Unfortunately, he finds out the paper he's reading is yesterday's paper and leaves to get today's paper.
While going out to get today's paper, SpongeBob accidentally locks himself out of his house, allowing the guests to have fun again. He misinterprets this and believes everything is falling apart.
After continually trying to get into his house using different methods, he grabs a pickaxe and attempts to break in while dressed as a bunny. The police find him and place him under arrest, but when SpongeBob explains everything, they don't arrest him. However, the police attempt's to make him miss the party by arresting him for not inviting them.
The next morning, when he gets back, he is depressed because his party failed until Patrick comes and tells him that it was the greatest party all of them has ever been to and that he should do exactly the same thing next weekend. SpongeBob smiles gladly and becomes proud and finds Gary wearing a lamp. The episode ends as SpongeBob turns off the lamp.
For the final live-action segment, Patchy attempts to remedy the music situation by performing his own song with a one-man band, and Potty tells Patchy that it's time for his flute solo. Patchy starts playing but soon realizes that he plays a fife, not a flute and that the "flute" is actually dynamite. It explodes, leaving only his head intact. The Birdbrains then have the opportunity to play music, singing their new song, "Underwater Sun." After they finish, Patchy returns to end the show, with a barrel for a body being kissed by girl parrots. Potty then says goodbye to the audience.