After returning from a mission, the penguins are unable to bring Jason and Michelle back to Grandmum's house as the galeezel is broken. Until it's fixed the kids have to join the penguins as they battle Cavitus, who's plotting to steal the Space-T-Freeze ship. Cavitus tries to thwart the penguins by getting them angry at each other and accusing them for things they didn't do. Soon everyone learns the importance of knowing all the facts before jumping to conclusions.

Jason and Michelle set off a series of practical jokes on board the ship. None of which turn out to be very funny to their victims. Then the crew is asked to act as substitute teachers at the Academy. Jason and Michelle help out and see what it's like to be at the wrong end of a practical joke. Cavitus infiltrates the school in an attempt to defeat the Penguins. Naturally everything comes to a head, and Penguins learn a lesson that a joke isn't funny when it hurts somebody. Cavitus escapes and the Penguins learn that Bert the Hamster and Cavitus are one and the same!

When Jason takes the stage as a stand-up comedian, he makes fun of his twin sister, Michelle, to get laughs. But when her feelings are hurt, spaceship comrades Zidgel, Midgel, Fidgel, and Kevin must come to the rescue! Can they help Jason learn to be funny without making fun of others?

Michelle is troubled, feeling like she isn't pretty. As she wrestles with her outward appearance, she and Jason join the Penguin crew as they head to the MISO GUAPO beauty products convention where Zidgel is supposed to deliver a speech. Through a bizarre Galeezel accident, Zidgel and Kevin switch bodies, and mayhem ensues.