Instead of attending summer school, Hobie decides to go power skiing with two friends, whose recklessness leads to a tragic accident. Eddie's lack of financial resources is revealed when Craig finds him sleeping in one of the lifeguard towers.

Mitch's former wife is planning to move to Ohio and wants to take Hobie with her. Upset over the squabbling that ensues, Hobie takes off with a friend and runs into pirates on a nearby island. Eddie and Shauni squabble after Shauni accidentally hurts Eddie.

An underwater photographer is attacked and more than a few people believe a sea monster is responsible. With the hysteria over the 'sea monster', Mitch and his fellow lifeguards are determined to get to the bottom of the mystery. Shauni's work as a lifeguard leads to conflict with a bunch of locals and her father but her father has a change of heart after he learns more about what she does.