Ash and company want to see a special Orange League trophy that is three hundred years old and was found on an old sunken ship. But Team Rocket steal the cup. By accident, Ash-tachi stumble upon Team Rocket (who are hungover, I think ^_^.) and give chase. The Rockets steal a Seadra boat, and Team Ash goes on Lapras. They all travel through fog until they come to an empty, ancient ship - the same one from which the trophy was taken.
Team Rocket is getting spooked, seeing sheets moving, and when Ash-tachi follow, Togepi gets lost. Misty finds it near some ghosts, and is scared, but tries to rescue it. However, these sheets are really Gastly and Haunter. They use Meowth to talk, telling Ash how their master was the captain of that ship, who won the trophy using them at Pokémon League. They were so proud to have helped him to win, as he was a good trainer, and have protected the trophy ever since. Now it is where it belongs. Team Rocket tries to steal it back, but the ghosts and Pikachu defend it, sending them off again... Gastly and Haunter take their ship high into the night sky, hoping to find a place where they won't be disturbed.