The episode begins with SpongeBob and Sandy having a good time at Goo Lagoon. A lobster named Larry comes by and asks them if they want to do some weights. They accept, despite SpongeBob not being in the mood to do weights. Larry and Sandy do several impressive weight stunts, while SpongeBob tries to pick up a stick. When SpongeBob strains to pick up a stick with two marshmallows on the sides, he accidentally rips his pants.
This causes everyone to laugh, prompting SpongeBob to continue making ripped pants jokes. After a while, though, SpongeBob's ripped pants jokes start to annoy the people in Goo Lagoon. At some point, SpongeBob fakes himself drowning in order to make a ripped pants joke, but this proves to be too far, as it causes everyone, most importantly Sandy, to get disgusted with SpongeBob and continue playing without him.
SpongeBob tries to figure out more ripped pants jokes as the last one did not work but realizes nobody is paying attention to him, and tears off his pants during the course of one of these jokes. The pair of pants suddenly takes on a personality and deserts SpongeBob as well. He sees some other people who make big mistakes. SpongeBob decides to sing a song about how he lost his friends due to ripping his pants. Sandy forgives SpongeBob for what he did, and he rips his underwear while signing Larry's shorts, making him embarrassed and ending the episode after that.
The only thing SpongeBob really has over Larry (or so he feels) is that he can make everyone (and in particular, Sandy) laugh, so he goes overboard with the ripped pants thing until no one finds it funny anymore, and one of his jokes goes too far and gets everyone angry with him.
SpongeBob wears blue swim trunks and holds a guitar. He is activated by pushing the button on his foot. He moves and bends over, "ripping" his swim trunks, also his cheeks light up in red looking like he "blushes" like he feel "shame" after he ripped the pants and he tells several "Ripped Pants"-related jokes, most of which were taken from the episode of the same name. He also strums his guitar as he sings the "Ripped Pants" song.
The Narrator introduces Goo Lagoon, a popular beach in Bikini Bottom. While at the beach, SpongeBob and Sandy are sitting down in beach chairs. SpongeBob puts on a show by making sand sculptures, which makes Sandy laugh. Larry the Lobster comes and asks if they want to lift weights. Sandy accepts quickly, while SpongeBob mopes behind them. When they arrive at the weight lifting area, Sandy lifts a bar weight and the crowd cheers. SpongeBob tries to get them to do something else, but Larry continues. He lifts a bar weight with six weights and the crowd cheers. Attempting to impress the crowd, SpongeBob lifts a stick but the crowd is bored. Sandy then lifts two anchors and is cheered. Larry then lifts the entire audience and bleachers, and once again the crowd cheers. A left out SpongeBob tries to get more attention by lifting marshmallows he borrowed from a fish who was roasting them. However, he accidentally rips his pants in the process, and the crowd laughs hysterically. Feeling embarrassed, SpongeBob sadly leaves the weight lifting area. Beachers continue to laugh at him and Scooter compliments him for the good laugh. When Sandy agrees, SpongeBob decides to use this as an advantage. He goes onto ripping his pants while playing volleyball, then while playing frisbee. SpongeBob and Sandy then proceed to get some ice cream in which he uses his ripped pants joke to gain attention. He gets carried away and uses the joke at the snack bar and a kitchen.While at the surfing competition, SpongeBob rips his pants while surfing, which bores everyone. Realizing this, SpongeBob pretends to drown. When he washes up on the beach, a crowd gathers around him. He tells the lifeguard that he needs a tailor--because he ripped his pants. Everyone gets upset, including Sandy. He attempts to revive the joke by ripping his entire pants off, but it is unsuccessful. After he realizes that he has driven all his friends away, he asks himself if he is the biggest loser on the beach. This question is answered by three other beachers, who each believe they are the biggest losers on the beach. Evelyn, who forgot to put on sunscreen, a turtle, who got sand in burger buns, and a whale named Frank who was buried in the sand and forgotten. They ask SpongeBob what happened to him, and he tells his story through a song. The waves during the lines "Now I learned a lesson I won't soon forget, So listen and you won't regret" were identical to the one in The SpongeBob SquarePants Movie credits, SpongeBob's song gains popularity; everyone on the beach sees this, and understands how he feels and that he apologizes. Sandy tells SpongeBob that if he wanted her to be his friend, he should have been himself. Larry asks for an autograph on his pants and SpongeBob accepts. He bends down to sign, and his underwear rips off completely. SpongeBob is now fully naked in public and blushes in embarrassment.
SpongeBob continues to find ways to get the attention of others, settling on taking his pants completely off instead of ripping them again. He then does so, but nobody is even nearby to pay attention.
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