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SpongeBob goes to Sandy's treedome so that he can show her his new karate move. When he arrives he sees her with a stranger, which makes him think she's being attacked, and he walks in to defend her, but is stopped by the stranger's smelly feet. Sandy introduces SpongeBob to the stranger, who is actually Fuzzy Acorns, the greatest karate master ever. Sandy tells SpongeBob that Fuzzy is here to see her karate skills. She is trying to earn a blacker belt, which is the the highest belt in karate. SpongeBob states that he wishes he had a belt. Fuzzy hears this and tells him that if he wants the belt, he'll have to earn it. Fuzzy then tests SpongeBob so that he can earn a belt, however, he ends up failing both of the tests that Fuzzy gives him. Fuzzy tells SpongeBob that he'll face off against Sandy tomorrow. If SpongeBob wins he'll get his belt, but if he loses he'll get nothing.
SpongeBob goes to his house to train overnight and then comes back to the treedome, tired and restless to face off against Sandy. SpongeBob does poorly because of how tired he is. Fuzzy stated that he would've awarded SpongeBob with a clear belt if he lasted longer, but says that he's not even worthy of wearing the belt that keeps his pants up, so he takes SpongeBob's belt and causes his pants to fall down. He then proceeds to take away Sandy's black belt for wasting his time and tells SpongeBob to stick to something that he's good at. He leaves as Sandy calls him out for insulting SpongeBob. She tries to convince Fuzzy to give SpongeBob another chance, but Fuzzy never gives a second chance and wishes to find food. Sandy then gets the idea to have Fuzzy go to the Krusty Krab and see SpongeBob in action.
At the Krusty Krab Squidward tells SpongeBob to stick to what he's good at and not try something new, and SpongeBob realizes that he's right. Fuzzy watches SpongeBob, but is still not impressed with his agility, however, he finally becomes impressed when SpongeBob cuts Sandy's burger in twelfths with his hand. Fuzzy starts to think that SpongeBob is more skilled than he thought, so he proceeds to try and attack him, but SpongeBob is so busy that he doesn't notice Fuzzy sneaking up on him and doges and attacks him without knowing he was there, not being aware that there was even a fight. Fuzzy has enough and tries to finish it, but SpongeBob, who is still unaware of the fight, bends down to grab a ketchup bottle, dodging Fuzzy's kick and sending him over to the door of the Krusty Krab. Fuzzy looks terrible, but Sandy says that he just needs an air helmet. She then gives him one and Fuzzy admits that SpongeBob is a worthy karate fighter, and he then gives him a black belt. He also gives Sandy his own blacker belt for proving that SpongeBob does know karate. Fuzzy's pants fall down because he took off the belt, and the crowd proceeds to laugh.
