When SuperTed and Spotty enjoy a tropical holiday, Texas Pete and his cronies Bulk and Skeleton salvage sunken treasure that a whale eats up, then capture a child named Kiki and her pet whale (who calls on the short-waves for SuperTed's help). Meanwhile after Tex and his crew go scuba diving, SuperTed (who saw the big Whale collor that Tex put the whale in) and Spotty (who saw her lost charm bracelet on the boat) get a couple of dolphins to go under the ocean to stop the kidnap of Kiki and stop Texas Pete stealing treasure and set the Whales free.