One night, SpongeBob suddenly possesses the amazing ability to visit the dreams of his friends and neighbors. As he visits from one dream to the next, SpongeBob gets involved in their personal fantasies, for better or worse. The residents of Bikini Bottom, however, aren't too happy about this new addition to their nightly slumber.

SpongeBob comes down with a case of the dreaded "Suds", an illness which turns him into a sniffly, sneezing, bubble-maker. A mandatory visit to the doctor's office is sidetracked, however, when Patrick convinces him that such a move holds unspeakable horrors (like old magazines!). It's up to Sandy to knock some sense into the boys.

When Mr. Krab's daughter Pearl is stood up for her prom, SpongeBob agrees to step in. Not wanting Pearl to feel bad about her date, SpongeBob tries to make himself tall, dark and handsome. His efforts cause much embarrassment and Pearl is distraught but not as much as SpongeBob. Pearl is finally able to see SpongeBob for the great guy that he is.

Mr. Krabs uses the award to drive SpongeBob, but he dupes SpongeBob into believing he might break his ongoing winning streak and lose this month to Squidward. Squidward could care less but goes along with the ruse for fun. But when a fearful SpongeBob works so hard he humiliates Squidward at work, the battle for the award begins.

It's time to pick this week's Hall Monitor at Mrs. Puff's Boating School and much to her dismay, it's SpongeBob's turn. The overzealous SpongeBob assumes the mantle of authority and extends it's jurisdiction beyond the school yard to include the environs of all Bikini Bottom. SpongeBob unwittingly wreaks havoc on the unsuspecting citizenry.

Over the repeated warning of his friends, SpongeBob takes a wild jellyfish home from JellyFish Fields. To his dismay, SpongeBob discovers that jellyfish multiply quickly, and they take over his house. The cause is lost until SpongeBob finds that jellyfish love disco music. SpongeBob becomes the Pied Piper of Disco and learns that wild creatures are best left in the wild.