Deep down in the Pacific Ocean in the subterranean city of Bikini Bottom lives a square yellow sponge named SpongeBob SquarePants. SpongeBob lives in a pineapple with his pet snail, Gary, loves his job as a fry cook at the Krusty Krab, and has a knack for getting into all kinds of trouble without really trying. When he's not getting on the nerves of his cranky next door neighbor Squidward, SpongeBob can usually be found smack in the middle of all sorts of strange situations with his best buddy, the simple yet lovable starfish, Patrick, or his thrill-seeking surfer-girl squirrel pal, Sandy Cheeks.

It is the final weekend of summer and a group of Californian teenagers are looking forward to an upcoming surf contest. Rival gangs the 'Vals' and the 'Lowks' are confident that they will take home the trophy, but things become complicated when Reef Yorpin - leader of the Lawks - discovers his sister Allie has fallen in love with 'Val' surfer Nick after meeting at a beach party.